Target Blames $400M Profit Decrease On ‘Organized Retail Crime’

The term "Organized Retail Crime" largely refers to people having a plan to steal, then resell the merchandize, compared to shoplifting for need.
The exterior of a Target store in Los Angeles, California before the start of business on August 17, 2022. - US retail sales held steady in July as gas prices fell sharply, but the new data released Wednesday by the Commerce Department showed consumers are still spending, keeping the pressure on the Federal Reserve to continue its aggressive interest rate hikes. (Photo by Robyn Beck / AFP) (Photo by ROBYN BECK/AFP via Getty Images)

At a glance

After releasing its third-quarter earnings, the Minneapolis-based retail giant told reporters on an earnings call that it has lost $400 million in gross profit margin, compared to last year.

Target CFO Michael Fiddelke said on the recent call that “theft is certainly a key driver” in the reduced gross profit margin. A Target representative later confirmed that “organized retail crime” is the type of theft most responsible for the reduced profit margin.

Fiddelke also estimated that the figure could balloon to $600 million by the end of 2022.

 

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