Violent incidents of theft and threats of violence at Target stores more than doubled in the first five months of 2023 compared to the same period last year, Brian Cornell, the firm’s long-serving chief executive, revealed on a Wednesday earnings call with investors.
“Our team continues to face an unacceptable amount of retail theft and organized retail crime,” Target CEO Brian Cornell told investors. “Unfortunately, safety incidents associated with theft are moving in the wrong direction.”
“During the first five months of this year, our stores saw a 120% increase in theft incidents involving violence or threats of violence,” Cornell added. “As we navigate an ever-changing operating and social environment, we are applying what we learned,” Cornell told reporters in a call on Wednesday. “Multiple economic crosscurrents are putting pressure on consumers.”
During an earlier investor call in May, Cornell had warned that Target’s woes stemming from “shrink” – a metric used to gauge theft as well as other inventory losses – could reach over a billion dollars, an increase of more than $500 million in just one fiscal year. Cornell confirmed during the call that earlier projections were accurate and that such problems are “well-above the sustainable level where we expect to operate over time.”
The unwelcome news comes on the heels of Target experiencing a significant drop in Q2 sales following pushback against its LGBT-themed merchandise.
Sales dipped early this summer after the company launched a Pride clothing collection featuring pro-gender transition clothing such as “tuck-friendly” swimsuits designed to hide male genitalia. The LGBT clothing line also featured children’s products from the brand, Abprallen, which sells Satanist-inspired trinkets.
/9 Target also knowingly stocked merchandise by “Satanist-Inspired” brand Abprallen for its pride collection. Abprallen is known for designs that glorify violence, such as designs showing the phrases “We Bash Back” with a heart-shaped mace in the trans-flag colors, “Transphobe… pic.twitter.com/2g4dyPdb9g
— America First Legal (@America1stLegal) June 6, 2023
Cornell condemned demonstrators who protested against the product line. “I want to make it clear. We denounce violence and hate of all kinds and safety of our team and our guests is our top priority.”
However, the public backlash inspired Target’s chief growth officer Christina Hennington to clarify that the company needed to find a balance between “celebration, inclusivity, and broad-based appeal.”