Target CEO Brian Cornell cautioned on Wednesday that the company expects a significant dent in profits of over $500 million this year due to an escalating trend of bold retail theft at its stores.
Speaking to analysts during an earnings call, Cornell expressed concern over the worsening shrink rates and emphasized that stolen products directly impact the availability of goods for their customers, who rely on them, Fox Business reported.
In the previous fiscal year, Target experienced losses of $750 million due to shrinkage, encompassing inventory loss resulting from various factors, including theft.
Cornell highlighted the rising occurrence of violent incidents not only at Target but also within the broader retail industry.
To address this growing issue, Target has undertaken multiple mitigation efforts. These include substantial investments in resources to safeguard both their team members and customers.
The company is implementing protective fixtures for merchandise and making adjustments to product assortments in affected stores.
However, Cornell stressed that combatting this problem requires collective action beyond any single retailer.
Consequently, Target is actively engaging in collaboration with legislators, law enforcement agencies, and partners in the retail industry to advocate for public policy solutions that effectively address organized retail crime.
Written by staff