“Organized Crime” Looters Steal Astounding $400 Million In Goods From Target Stores

Target is battling what’s being called an organized retail crime wave, resulting in a massive hit on profits this year. The company has employed theft-deterrent merchandising strategies, but still, that’s not enough to stop criminals from running off with everything on the shelves.

Earlier today, the company reported dismal earnings, slashed guidance, and warned consumers are pulling back on spending amid the worst inflationary environment in decades. The retailer also revealed gross profit margins were reduced by $400 million so far this year due to shrink, the industry term for theft and other product loss.

“There’s a handful of things that can drive shrink in our business and theft is certainly a key driver. 

“We know we’re not alone across retail in seeing a trend that I think has gotten increasingly worse over the last 12 to 18 months.

“So we’re taking the right actions in our stores to help curb that trend where we can, but that becomes an increasing headwind on our business and we know the business of other,” Target CFO Michael Fiddelke said. 

Yahoo Finance spoke with the Target spokesperson, who said the problem is primarily due to “organized retail crime.” – READ MORE