Target CEO: Retail theft may cost company over $1.2B this year

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Target said it’s seeing an increasing number of violent incidents at stores, but doesn’t want to close stores because that hurts workers and the community.

and doesn’t want to close stores because that hurts workers and the community. The retailer said it’s embracing different measures, from expanding security to locking up certain items.

First-quarter comparable sales — or those from stores or digital channels operating for the past 12 months — were flat compared with the year-ago period. That’s bit of a slowdown from the 0.7% growth in the previous quarter. Customer traffic was up, but shoppers focused on buying necessities like health and beauty and groceries over non-essentials. Comparable stores sales grew 0.7% but comparable online sales declined.

Sales rose 0.6% to $25.32 billion in the quarter, up from $25.17 billion in the year-ago quarter. Analysts expected earnings of $1.77 per share on $25.26 billion in sales in the latest period, according to FactSet. "We came into 2023 clear-eyed about what consumers were facing with persistent inflation and rising interest rates," CEO Brian Cornell said during a media call Tuesday.The discounter said in early March that it plans to invest as much as $5 billion this year expanding services for customers, including a drive-up service for returns, renovations at 175 stores and improvements in online shopping.Target is among the first major U.S.

 

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Target earnings on deck as discretionary spending looms large for the retail giantAnalysts are expecting Target to see a slowdown in discretionary spending when the retailer reports first-quarter results Wednesday.
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