In a stark warning to the retail industry, Target's chief executive Brian Cornell has revealed that organised retail crime has become an "urgent issue" threatening both employee safety and business viability across major metropolitan areas.
The retail leader disclosed that theft-related incidents have surged dramatically, with a worrying 120% increase in thefts involving violence or threats of violence during the first five months of this year alone.
The Growing Threat to Retail Workers
Speaking at the Economic Club of New York, Cornell emphasised that this isn't just about financial losses. "This is an urgent issue that not only impacts our business but, more importantly, the safety of our team and guests," he stated, highlighting the human cost behind the statistics.
The situation has become so severe that Target now anticipates losing more than $500 million in profits this year due to inventory shrinkage, primarily driven by organised retail crime.
Industry-Wide Crisis
Target isn't alone in this struggle. Cornell noted that the entire retail sector, including giants like Walmart and Amazon, faces similar challenges. The National Retail Federation reports that organised retail crime costs retailers nearly $100 billion annually.
What makes this trend particularly concerning is the increasing sophistication of criminal operations. Organised groups systematically steal merchandise for resale through various channels, often using online marketplaces to fence stolen goods.
Call for Collaborative Action
Cornell stressed that no single retailer can solve this problem alone. He called for increased collaboration between retailers, law enforcement, and community leaders to develop effective solutions.
"We're working with legislators, community organisations and retail industry partners to address this growing problem," Cornell explained, underscoring the need for a multi-faceted approach to retail crime prevention.
As retailers continue to navigate post-pandemic challenges, the rising tide of organised theft represents another significant hurdle for an industry already facing margin pressures and changing consumer behaviours.
