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.
Signs of such problems – also know as “professional shoplifting” – are seen in stores nationwide, with retailers putting expensive items such as baby formula under lock and key.
