Over the last few quarters, retailers have called out shrink as one of the main reasons for a drain on profits and mostly blamed theft for those losses. Shrink is what inventory losses are called in the retail industry, accounted for by the costs of items that left a store or warehouse without being paid for.
Notably, Target Corp (NYSE: TGT) lost about $219.5 million more to shrink during 2023 Q2 than in the same quarter in 2022, according to public reports.
Gurgavin Chandhoke (@gurgavin on X), CEO of uINVST, warned the stock market on September 26 about Target being closed to accumulate over $1 billion in losses this year, due to the surge of shoplifting and organized retail crimes in the US.
Picks for you
Moreover, the company announced, on the same day as Gurgavin’s alert, the closure of nine out of its nearly 2,000 stores in some of the major cities in the country — blaming violence and theft as the core motivators.
TGT stock price analysis
Target Corp shares are reacting to this massive shrink hit that is plaguing the retail sector in the United States. TGT stock is having another red day, being traded at $109.55 per share for new lows.
These losses sum up to over 10% in value depreciation in the last 30 days, with a clear change in its chart trend since September 18, after having kept a consolidation trend in this month’s first half.
Other retail companies are also suffering from the growing criminal wave, supposedly backed by meaningful changes in the US law regarding theft.
Buy stocks now with Interactive Brokers – the most advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
