Target Addresses Digital Channels After Overwhelming Demand for Lilly Pulitzer Collaboration

Target’s CEO Brian C. Cornell announced the company will make a $1 billion investment in technology and supply chain, during its Q1 2015 Results Earnings Call. This comes after the overwhelming demand for Target’s launch of its Lilly Pulitzer collection shed a light on its digital capabilities. However, Target’s digital growth contributed 80 basis points to its comp sales increase in the first quarter, according to the comany. 
“In April, we were thrilled with the overwhelming demand for items from our collaboration with Lilly Pulitzer, with most of the collection selling out in the first few days,” said Cornell . “We were disappointed, however, that our digital channels were not able to properly accommodate the surge in traffic at the time of the launch, and the team is working to address root causes and learn from the experience as we prepare for holiday season peak later this year.”

The Lilly Pulitzer collection launched on April 19th with hundreds and thousands of guests lining up waiting for that product, according to Cornell. However the heavy demand reportedly overloaded the retailer's website and left store racks bare.

Cornell noted that Target had some missteps online and is looking at root causes. He continued the event is "going to provide important learning for us as we get ready for the traffic we expect to generate during the holiday season.”
Cornell followed that Target is committed to putting its capital behind improving technology capabilities and the supply chain requirements necessary to continue to grow that business at the accelerated rates the company is delivering right now.

Kathryn A. Tesija, Executive Vice President, Chief Merchandising and Supply Chain Officer, Taget, noted that the company continues to invest in its technology and supply chain capabilities to allow our guests to shop on demand and receive products where and when they want.

“The good news is that even though we have much more to do, the positive guest response to what we've already accomplished makes us confident we are moving in the right direction,” said  Tesija

Merchandising and Supply Chain Officer John J. Mulligan, CFO & Executive VP, Target, noted the supply chain investments Target makes are incredibly important for its guests because they provide speed to market from their perspective, but they’re also important for Target because they improve the economics of its online business meaningfully.