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mix accounted for approximately 10 basis points of pressure
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2022 Q2
18 Aug 22
digital fulfillment and supply chain drove about 1.5 points of pressure reflecting increased compensation and headcount in our distribution centers combined with the cost of managing excess inventory and higher last mile shipping costs.
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2022 Q2
18 Aug 22
Merchandising accounted for more than seven points of this pressure driven primarily by our inventory reduction efforts along with the impact of higher fuel and transportation costs, product cost increases and higher shrink, partially offset by the benefit of retail price increases.
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2022 Q2
18 Aug 22
Average ticket remained essentially flat in the quarter as low single-digit increase in average retail was offset by a similar reduction in the number of items per transaction.
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2022 Q2
18 Aug 22
traffic growth is another important indicator of the relevance of our brand.
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2022 Q2
18 Aug 22
our Q2 inventory actions also included the removal of more than $1.5 billion of fall receipts in our discretionary categories
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2022 Q2
18 Aug 22
At the end of the second quarter, inventory on the balance sheet was about $6 billion higher than we reported three years ago. Of that dollar growth, about $3 billion or approximately half of that total growth is the result of higher unit costs across our assortment. Of the remaining $3 billion, our analysis indicates another $1 billion to $2 billion is related to our decision to move receipt timing earlier given the volatility we continue to expect in the supply chain.
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2022 Q2
18 Aug 22
Another factor that drove inventory dollars higher is the continued increase in unit costs we've been seeing across all of our categories, which caused the dollar value of our inventory to grow faster than unit growth in the second quarter.
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2022 Q2
18 Aug 22
we leaned into our frequency categories during the quarter
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2022 Q2
18 Aug 22
because of the inventory actions we executed, unit growth compared with 2019 in our discretionary categories, decelerated by more than 15% of claims between first and second quarter, a change we estimate would have reduced our inventory position by more than $1 billion if taken in isolation.
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2022 Q2
18 Aug 22
we've now seen 21 consecutive quarters of comparable sales growth
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2022 Q2
18 Aug 22
These small facilities expand ship-from-store capacity in the locations they serve, while significantly reducing last-mile delivery costs
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2022 Q2
18 Aug 22
we're continuing to modernize how our existing distribution centers serve our stores
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2022 Q2
18 Aug 22
finally, we're rapidly expanding the number of sortation centers operating around the country.
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2022 Q2
18 Aug 22
The first is to build additional upstream capacity to our network
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2022 Q2
18 Aug 22
we are also making significant investments in our supply chain focused on three main priorities.
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2022 Q2
18 Aug 22
we're on track to add about 24 new store locations in 2022.
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2022 Q2
18 Aug 22
In addition to these complete transformations, we're also making smaller investments in hundreds of other locations.
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2022 Q2
18 Aug 22
The first and largest investment is in our store remodel program
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2022 Q2
18 Aug 22
the majority of our CapEx is going into our store network, both to extend our footprint and invest in existing locations. These store investments fall into three major buckets.
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2022 Q2
18 Aug 22