Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Target loses $400 million this year to ‘organized retail crime’

Retailers are on edge for the upcoming holiday season as Target announces during third-quarter earnings call a $400m loss due to crime.

crowd outside of target store representing black friday

Target is cracking down on its anti-theft measures, most likely due to organized crime, which has zapped a huge hole in the company’s pocket. The retailer claims that “friendly fraud” and theft cost them $400m this past year alone. 

Michael Fiddelke, the Chief Financial Officer of Target, discussed the inventory shortage in their third-quarter earnings call recently. The shortage is also known as a “shrink,” which is when a company has fewer items in stock than its recorded inventory shows.

Possible reasons are shoplifting, admin errors, theft, damage, or fraud. Fiddelke explained to analysts that the shortage has cost the company $400 million so far this year, and it is expected to grow to $600 million before the year is out. He states that the massive shortage they’re experiencing is part of a nationwide issue that affects other retailers as well, putting emphasis on organized crime being the main reason why

Retail crimes made headlines throughout last holiday season when some stores across the US were the victims of “flash mob” thefts that showed huge groups of thieves attacking a store at the same time, intimidating store security and grabbing what they could before fleeing the scene. The comments made by Twitter personnel hinted at a much more serious and long-term issue that’s changed the way the retailer takes remedial courses of action. 

Advertisement. Scroll to continue reading.

Some Target locations now have entire aisles covered by locked glass doors, even toothpaste aisles. Target made it clear that this is something they don’t want to do because it makes it far less convenient for customers to shop, but it’s what it’s come down to.

The corporation stated that its biggest priority is keeping its team and guests safe, and the remediation actions they’ve implemented are helping.

This is one of many situations that outline a serious, deep-rooted issue our country is currently facing, with a looming recession and layoffs rising only being a small part of that. 

Macie LaCau is a passionate writer, herbal educator, and dog enthusiast. She spends most of her time overthinking and watering her tiny tomatoes.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

Target originally had their forced retirement age set at 65, but coincidentally sets it back prior to CEO nearing cutoff.

Business News

(BUSINESS NEWS) Target is launching same day delivery - will we save money by nixing impulse buys, or will the convenience make us spend...

Business News

(BUSINESS NEWS) Retailers everywhere are feeling the pressure from Amazon. Yet, Target is taking that pressure and producing more stores.

Business News

(BUSINESS NEWS) Target has been re-evaluating how to draw patrons back to their stores and it seems that its working.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.