Target estimates 'organized retail crime' could cost company $600M

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Target's CFO said he expects the company's gross margin to be reduced by $600 million for the full year, and said it's not just an issue for them.

Target's CFO Michael Fiddelke revealed that it wasn't just inflation that was driving down profits for the company, it's also believed to be theft as well.

"At Target, year-to-date, incremental shortage has already reduced our gross margin by more than $400 million vs. last year," Fiddelke said.Fiddelke said there are a"handful of things that can drive shrink in our business and theft is certainly a key driver. We know we're not alone across retail in seeing a trend that I think has gotten increasingly worse over the last 12 to 18 months.

Yahoo Finance Editor-in-Chief Andy Serwer blamed the issue on people not"getting a fair shake" when talking about why there is theft of products.

 

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Armed guards are the best deterrents. Also EVERYONE must show their receipt before leaving.

Put guards at doors. 4 to each big set of doors. In uniform! With spray for faces!

Is that code for unpunished shoplifting gone wild?

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