Shoplifting Rings Cost Target $600M In Year
View Source | November 18, 2022 12:06 pm
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- 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.
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