"Retail Shrinkage: Target Executive Highlights Ongoing Challenge"

Target's CFO, Michael Fiddelke, has warned that inventory shrink, primarily due to theft, continues to be a significant challenge for the company. The rising cost of shrink negatively impacted the company's third-quarter gross margin rate. Despite efforts to combat retail theft, including expanding locked merchandise cases, Target has faced store closures due to safety concerns. Retail executives and industry trade groups have called for help from Congress to address the growing issue of organized retail crime. However, Target remains optimistic about its holiday-quarter profit, forecasting higher-than-expected earnings. The company's third-quarter profit exceeded expectations, attributed to efficiency and disciplined inventory management.