TGT
#So <UNK>, I'm not going to go through the details of our plans.
We'll kind of maintain that powder for the fourth quarter.
But we are certainly looking at newness in electronics.
We're looking at categories where we think we are uniquely positioned to win.
So working very closely with our suppliers, to ensure that we have the right newness, that we're ready with the right presentation.
I think there's a lot of exciting things in the pipeline.
We certainly think, as we continue to focus on wellness, that wearable technology is a space where we can and will win.
But we also recognize right now that many of those categories are waiting for new innovation.
And we're working closely with our key suppliers to make sure that we are going to be bringing that innovation to the guest and featuring it throughout the fourth quarter.
I'll take the second one first, and then let <UNK> comment on the growth.
I think on our supply chain for the digital channel, we actually have six dedicated fulfillment centers.
And we think the combination of fulfillment centers with our existing regional distribution centers, and along with the stores, gives us all the capability we need.
And then you'll see us continue to grow the store channel, our regional distribution channel, all three of those channels, as ways to fulfill, depending on the product and how quickly the guest wants it.
Yes.
And <UNK>, I'll step back and just talk about some of the fundamentals.
We've got to continue to make sure we build awareness.
We've got to make sure that as our guest engages with us digitally, we make it really easy.
We make it easy to find product, an easy checkout experience.
We believe that Available-to-Promise, which will roll out this fall, will give our guest the confidence that they know where the product is and when it will arrive for them.
Either in a store for them to pick up or being available directly to their home.
So we are focused on making sure that we provide, not only a great in-store, but a great digital experience.
And we've got to make sure that we continue to make our site easy to work with.
And more and more that's the mobile interchange that we've got to make sure is easy for our guest to find product and check out.
We want to give them the confidence that when they order, they know it's available to promise.
And we're going to have it there for them when they need it.
And to the point <UNK> made, we don't need to be building upstream DCs.
We're going to continue to convert more of our stores and as we go into the fourth quarter, close to 450.
That will act as flexible fulfillment centers to make sure that we can quickly and efficiently get product to the guest.
So those fundamentals are critically important as we think about driving industry-leading growth.
Yes.
So we're right on track with savings.
We've got programs identified to deliver the entirety of the [$2 billion], the $1.5 billion in SG&A, plus the cost of goods savings.
So we feel really good about that.
We're on track for our commitment this year as well.
One of the things we talked about when we first announced this, and we've talked about it in a great detail in the Company, is the stores are already productive.
And if we're going to take hours out of the store, it will be because we eliminate work, or to the point <UNK> made earlier, move work upstream into the distribution centers.
And so we're not focused on taking hours out of the store.
We are focused on taking work out and we haven't ---+ we're in the process of working through that.
That's a little bit longer lead process than some of the other things we've done.
But we are very focused on, essentially, freeing up those hours in the store.
And then we'll decide, do we need them for improved guest service or how we'll utilize them.
But in fact, there's a couple areas where we have invested hours back into the store.
As we put in the whole merchandising sets and as we put in manikins, we've realized the need for dedicated store team members who can merchandise those displays and make them look great all the time.
So that's an area where we've invested back into the store.
Thanks.
All right, we have time for one more question this morning.
Yes.
Good questions.
On the credit side, the benefit, it was up, but not meaningful.
And it was less than, I'd say, less than half a penny of improvement versus last year.
So very, very small.
We are pleased it was up given that the, as we said, payment rates continue to go up.
And so we're seeing the portfolio continue to shrink.
So clearly, a portion of where the gas dollars are going, at least from our perspective.
SG&A through time, we'd expect to lever SG&A, go up, over the long term here, go up modestly, slower than sales growth.
I think we've said we're going to continue to take expense out.
But we also said that the majority of that expense will likely get reinvested.
So I wouldn't count on big reductions in our SG&A over time.
There will be places where we have to add back expense to meet the needs of our guests I just talked about in the stores.
So modestly slower than sales growth over the long term would be what I'd say.
Well, great.
Thank you.
And for all of you, that concludes our second-quarter earnings conference call.
And I really appreciate you joining us today, so thank you.
