“Companies are also likely using the opportunity to draw attention away” from lower profit margins due to higher promotions and poor inventory planning in recent quarters, William Blair retail analysts Dylan Carden and Phillip Blee said in a report this week.
The analysts noted that overall shrink — merchandise losses due to external and internal theft, damaged products, inventory mismanagement and other errors — makes up just 1.5% to 2% of retailers’ sales.
Target said last month that it’s closing nine stores in major cities specifically because “theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance.”
One analysis by journalist Judd Legum at Popular Information found that the stores Target is closing in both New York and San Francisco had lower reported theft rates compared to other nearby locations.
“We have to acknowledge potentially ulterior, more opportunistic motives.” “Target could be using shrink to mask other issues, including poor inventory management, which came to a head in 2022 following supply chain disruption” and is closing stores to “boost overall margins.”
They have called for local and state government to more aggressively prosecute organized retail crime, lower the dollar thresholds for theft to rise to a felony, and reverse policies to eliminate cash bail.
The original article contains 1,031 words, the summary contains 210 words. Saved 80%. I’m a bot and I’m open source!
This is the best summary I could come up with:
“Companies are also likely using the opportunity to draw attention away” from lower profit margins due to higher promotions and poor inventory planning in recent quarters, William Blair retail analysts Dylan Carden and Phillip Blee said in a report this week.
The analysts noted that overall shrink — merchandise losses due to external and internal theft, damaged products, inventory mismanagement and other errors — makes up just 1.5% to 2% of retailers’ sales.
Target said last month that it’s closing nine stores in major cities specifically because “theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance.”
One analysis by journalist Judd Legum at Popular Information found that the stores Target is closing in both New York and San Francisco had lower reported theft rates compared to other nearby locations.
“We have to acknowledge potentially ulterior, more opportunistic motives.” “Target could be using shrink to mask other issues, including poor inventory management, which came to a head in 2022 following supply chain disruption” and is closing stores to “boost overall margins.”
They have called for local and state government to more aggressively prosecute organized retail crime, lower the dollar thresholds for theft to rise to a felony, and reverse policies to eliminate cash bail.
The original article contains 1,031 words, the summary contains 210 words. Saved 80%. I’m a bot and I’m open source!