A new Bloomberg report reveals that retailer Target is finally cracking down on thieves by lowering the staff intervention threshold from $100 to $50. Target management has complained on earnings calls about 'shrink' in recent quarters and surging thefts that have squeezed margins.
People familiar with the new policy say employees will soon be able to intervene and halt criminals from leaving the store with as little as $50 in stolen goods. The previous threshold was $100. They say the new policy will be enforced this summer.
Target operates nearly 2,000 stores in the US and has warned investors countless times about damaging shrink—inventory loss due to theft, damage, and other factors—which has squeezed profit margins.
In March, Target Executive Vice President Michael Fiddelke said the company lost $500 million more in shrink in 2023 than in 2022.
The company expects shrink to a peak in 2024 as it works with policymakers and various cities to address out-of-control thefts.
Progressive lawmakers in states that ignored law and order only emboldened criminals to pillage retail stores as criminal and social justice reforms backfired. California decriminalizing thefts under $950 has been one of the biggest policy failures.
The National Retail Federation has previously stated that shrink accounted for $112.1 billion in losses in 2022, up from $93.9 billion in 2021. Failed progressive policies have sparked unprecedented levels of theft.
Bloomberg data shows that the number of 'shrink' mentions on earnings calls began rising in 3Q22, peaking at nearly 600 in 3Q23, but remains elevated.
In response, retailers have shut down stores in crime-ridden areas and locked up entire aisles of high-value items. A lawless society, due to failed progressive policies, cannot economically thrive. It's time for Americans to demand law and order.
