Target: ‘Organized retail crime’ has driven $400 million in extra profit loss this year

Yahoo Finance (11/16/2022)
  • On Target’s recent earnings call, CFO Michael Fiddelke said that theft has reduced the retailer’s gross profits by $400M so far this year.
  • This “inventory shrinkage” is largely driven by merchandise theft by organized crime groups that has gotten “increasingly worse” over the last 12-18 months.
  • The National Retail Federation (NRF) claims that goods stolen from US retailers increased by almost $4B to $94.5B last year.
  • In response, retailers are hiring more security in a shift away from relying on spread-out store employees.