Target Takes $400 Million Loss Due to Rising Retail Crime

Target said this week the reason for their $400 million in revenue losses can be attributed to “organized retail crime.”

QUICK FACTS:
  • Target Chief Financial Officer Michael Fiddelke told reporters Wednesday that “organized retail crime” was the reason for the company’s $400 million reduction in gross profit this year.
  • “At Target, year-to-date, incremental shortage has already reduced our gross margin by more than $400 million vs. last year,” Fiddelke said. “We expect it will reduce our gross margin by more than $600 million for the full year.”
  • Fiddelke said the retailer brand is “taking the right actions in our stores to help curb that trend where we can” but that “becomes an increasing headwind on our business and we know the business of others.”
TARGET CHIEF FINANCIAL OFFICER MICHAEL FIDDELKE ON RISING CRIME IN STORES:

“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,” FIDDELKE SAID.

BACKGROUND:
  • Target, among other large corporations, have been transparent about their leftist policies and positions.
  • Ahead of Pride month this year, Target launched a line of “gender-affirming” products including “compression tops” and “chest binders,” undergarments that conceal breasts, and “packing underwear” that conceal male genitals.
  • Target reps confirmed at the time that the collection “marks the first time the retailer has stocked compression tops in stores — a huge move for queer youth who don’t have access to gender-affirming products.”
  • TomboyX’s compression top which is now being sold at Target is “a more comfortable alternative to the traditional binder” and “offers a more snug way to minimize your chest,” the company noted on its site.
  • “Make beach time more fun by putting your Pride on display wearing the Pride Adult Humankind x Target Unisuit,” Target noted in the description of the swimsuit. “It comes in a high neck design with short sleeves and Pride-inspired rainbow stripes along the shoulders, making it easy to show your support for the LGBTQIA+ community.”
  • Target also began selling “trans rights” t-shirts for children this summer.