• Target is the latest big retailer blaming shoplifting for putting a big hit on its profits. The company said its gross margin rate dropped from 28% in last year’s 3rd quarter to 24.7% this year.
• Along with shoplifting, referred to as shrink in the industry, the company blamed higher markdown rates and freight costs for dragging down profits.
• The company says “inventory shortage or shrink” is a major drain on profits and it “is a growing problem.” Target expects theft to cost it $600 million in lost profits this year.

Tagged: Crime Blotter