Target blames losses on "organized retail crime"

Target’s profits have been suffering this year — much of it, by their own admission, due to “organized retail crime.”

After releasing its third quarter earnings, the Minneapolis-based retail giant told reporters on an earnings call that it had thus far lost $400 million in gross profit margin compared to last year.

Target CFO Michael Fiddelke said on the recent call that “theft is certainly a key driver” in the reduced gross profit margin. A Target representative later confirmed to Yahoo Finance that “organized retail crime” is the type of theft most responsible for the reduced profit margin.

Fiddelke also estimated that the figure could balloon up from $400 million to $600 million by the end of 2022.