Know The Difference Minute

Over $1 billion in losses this year due to sticky fingers. 

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Target reports.
Welcome to the Know the Difference Minute for Wednesday, May 17th.
Running a retail operation isn’t easy. Logistics. Staffing. Maintenance. Fickle customers. And leakage.
More on that in a second. Target reported earnings today. Topped expectations even though sales rose only 4%. The company expects a low single-digit decrease this quarter.
The bigger issue is one we saw last year. Leakage or shrink are nice words for stolen and lost merchandise. It’s one spot where you don’t want a gain—but there it is—leakage will increase $500 million more than last year. Shrink last year was $763 million---so over $1 billion in losses this year due to sticky fingers.
Some of it is organized crime, some employees. To be fari, damaged goods count—but nowhere near the criminal side where hot goods wind up on online sites and Facebook Marketplace.
It’s not just Target. 2021’s number was $94.5 billion.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.