Sticky fingers hurt Target

Organized retail crime has reduced Target's gross profit margin by $400 million so far this year.

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Welcome to the Know the Difference Minute for Wednesday, November 16th.
For now, it’s tough to keep the American consumer down—even with high inflation. US retail sales rose 1.3% last month—beating estimates. Retail sales, which are not adjusted for inflation, were up by 8.3% for the 12 months ending in October.
Different story over at Target which reported weakening consumer demand—and issued a warning on holiday sales. Tucked into their 3rd quarter earnings call was the fact that too many are choosing the 5-finger discount.
During the call, management shared that QUOTE inventory shrinkage has reduced its gross profit margin by $400 million so far this year. ‘Inventory shrinkage’ is a nice way of saying they’re getting ripped off. A Target spokesperson said the ‘shrinkage’ is mostly organized retail crime—and it’s gotten worse over the last 12 to 18 months.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.