TN404
Well-Known Member
- Joined
- Jan 1, 2009
- Messages
- 480
- Likes
- 450
Target's (TGT) retail theft problem is now leading the retailer to close up shop in various locations around the country. Shares of Target plunged to a session low on the news, falling nearly 2%.
Yahoo Finance's Brooke Dipalma reports:
On Tuesday the big box retailer announced plans to close nine stores, effective Oct. 21.
"We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," the company said in a statement.
The stores set to close include one in Harlem, New York; two in Seattle, Washington; three near San Francisco and Oakland, California; and three in Portland, Oregon. All "eligible" employees will be offered the opportunity to transfer to other Target locations, the company said.
The decision to close stores came after the company reported that inventory shrinkage — mostly the theft of merchandise — would cut profits by $500 million this year. In 2022, profits took a $700 million hit from inventory shrinkage.
"Shrink in the second quarter remained consistent with our expectations but well above the sustainable level where we expect to operate over time," Target CEO Brian Cornell said in the company's second quarter earnings call.
Target added it "invested heavily in strategies to prevent and stop theft and organized retail crime in our stores" prior to closing stores, including by adding more security to stores, using third-party security guard services, and implementing "theft-deterrent" tools across our business.
Yahoo Finance's Brooke Dipalma reports:
On Tuesday the big box retailer announced plans to close nine stores, effective Oct. 21.
"We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," the company said in a statement.
The stores set to close include one in Harlem, New York; two in Seattle, Washington; three near San Francisco and Oakland, California; and three in Portland, Oregon. All "eligible" employees will be offered the opportunity to transfer to other Target locations, the company said.
The decision to close stores came after the company reported that inventory shrinkage — mostly the theft of merchandise — would cut profits by $500 million this year. In 2022, profits took a $700 million hit from inventory shrinkage.
"Shrink in the second quarter remained consistent with our expectations but well above the sustainable level where we expect to operate over time," Target CEO Brian Cornell said in the company's second quarter earnings call.
Target added it "invested heavily in strategies to prevent and stop theft and organized retail crime in our stores" prior to closing stores, including by adding more security to stores, using third-party security guard services, and implementing "theft-deterrent" tools across our business.
