THE CEO of Target has disclosed the impact of crime and theft on the company.
Brian Cornell shared the news with investors on a conference call on Wednesday.
The retail leader announced that thefts had continued to increase National Review.
Cornell said, “Our team continues to face an unacceptable level of retail theft and organized retail crime.”
“Unfortunately, security incidents related to theft are going in the wrong direction.”
Cornell added that an increasing number of thefts are violent and pose a danger to staff.
He informed investors that these incidents more than doubled from January to May this year compared to the same period last year.
He said: “In the first five months of this year, there has been a 120% increase in thefts with violence or threats of violence in our stores.”
“As we move in an ever-changing business and social environment, we apply what we have learned.
“Several economic countercurrents are putting pressure on consumers.”
This comes as Target acknowledged high levels of inventory shrinkage in a call to investors in May.
Shrinkage is the metric companies use to calculate the amount of lost or stolen inventory.
Cornell told investors that Target is expected to lose $600 million in profits this year due to this issue.
He said: “While shrinkage can be caused by multiple factors, theft and organized retail crime are increasingly pressing issues impacting the team, our guests and other retailers.”
Target’s troubles remain as the retailer missed quarterly sales expectations earlier this week and cut its full-year profit and sales guidance supermarket news.
Cornell mentioned enhanced anti-theft measures that Target has implemented to combat the problem.
A Target shopper used TikTok to reveal that Target’s anti-theft measures were extreme, prompting him to shop on Amazon instead.
TikToker Cook Wayne He said an item he was trying to buy for his son was behind glass and needed the staff’s help to purchase it.
Wayne said, “I pushed the button for help a couple of times so they could open the closet so we could get it and they didn’t come.”
He claimed that while he was waiting for help at the store, he went to Amazon and ordered the product.