(WTVO) — In a recent earnings report, Target executives said the company lost $400 million in organized retail theft.
On an earnings call, Target CEO Brian Cornell said “We’ve seen a significant increase in theft and organized retail crime across our business. As a result, we’re making significant investments in training and technology that can deter theft and keep our guests and store team members safe.”
The retailer also said that its profits had fallen 50% in the third quarter, and also cited inflation and rising interest rates as contributing factors.
“This is an industrywide problem that is often driven by criminal networks, and we are collaborating with multiple stakeholders to find industrywide solutions,” Cornell continued. “For example, because stolen goods are often sold online, Target strongly supports the passage of legislation to increase accountability and prevent criminals from selling stolen goods through online marketplaces.”
In Illinois, Gov. JB Pritzker signed House Bill 1091, aka the INFORM Act, which targets organized “smash and grab” retail theft crimes. Those who violate the crime by knowingly engaging with others in a theft valued at $300 or more would be guilty of a Class 3 felony. Those who engage in retail theft from one or more establishments would be guilty of a Class 2 felony.
Last year, Walgreens closed several stores in San Francisco due to persistent theft.