- 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.
