Crime

The numbers are ridiculous:

The retailer estimated in its earnings release Wednesday that inventory shrinkage — mostly the theft of merchandise — would clip profits by a whopping $500 million this year. Factoring in an about $700 million profit hit from inventory shrinkage in 2022, Target is on pace to see $1.2 billion in profits go up in smoke, due primarily to organized retail crime.

That's really eyepopping...

It's almost hard to believe that this could just be people stealing stuff. I wonder if organized retail crime actually refers to something more complex than just people picking stuff up and walking away with it.

Target Chairman and CEO Brian Cornell says the problem is getting worse, is nationwide, and across various merchandise departments.

"The unfortunate fact is violent incidents are increasing at our stores and across the entire retail industry. And when products are stolen, simply put they are no longer available for guests who depend on them," Cornell said on a call with reporters.

"Left unchecked, organized retail crime degrades the communities we call home. As we work to address this problem, the safety of our guests and our team members will always be our primary concern. Beyond safety concerns, worsening shrink rates are putting significant pressure on our financial results," he said.

It does turn out that Organzied Retail Crime might be something more:

What Is Organized Retail Crime (ORC)?

Organized retail crime (ORC), also referred to as organized retail theft (ORT) or professional shoplifting, involves two or more people who conspire to steal retail merchandise with the intention of reselling the items at a profit. Unlike shoplifting, which involves an individual stealing something for their own personal use, ORC is usually a large-scale operation backed by a criminal enterprise that may also engage in other types of theft, fraud, and money laundering.12

ORC is one of the leading causes of retail shrinkage, or inventory loss. According to the 2022 National Retail Security Survey (NRSS), published by the National Retail Federation (NRF), shrinkage represented nearly $100 billion in losses for the retail industry in 2022. ORC is also a major cause of violence in retail environments, creating safety risks for retail workers and customers.3

It's apparently divided into two parts:

Organized retail crime operations are typically divided into two parts: boosting and fencing. First, “boosters” steal goods, whether from retail stores or ecommerce sites. “Fences” or “fencing operations” are then responsible for purchasing or receiving the merchandise and reselling it to turn a profit. Historically, many of these goods have been fenced in flea markets and pawnshops; however, stolen merchandise is increasingly being resold in online marketplaces that facilitate the anonymous, large-scale, and fast-paced movement of goods.42

Investopedia

So it really does sound like this really is just in reference to the local guys coming in and snatching everything up.