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Inventory Shrink

All articles tagged with #inventory shrink

retail2 years ago

"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.

via Fox Business|
#financial-results#holiday-quarter-profit#inventory-shrink
retail2 years ago

"Retail Giants' Strategies to Outsmart the Surge in Theft"

Despite the rise in retail theft, retailers such as Costco, Lowe's, Best Buy, and Tractor Supply have managed to minimize its impact on their businesses. These companies share similarities in their strategies to combat theft, including store location in suburban or rural areas, the sale of big and heavy merchandise that is difficult to steal discreetly, secure displays that require customer assistance, and limited self-checkout options. These tactics have helped these retailers maintain lower incidents of theft and mitigate the effects of retail theft on their profits.

via Business Insider|
#inventory-shrink#loss-prevention#retail
business2 years ago

"Dick's Sporting Goods Reports Strong Q2 2023 Earnings"

Dick's Sporting Goods reported a 23% drop in profits and lowered its earnings guidance for the year due to increased retail theft and slow sales in its outdoor category. The company fell short of Wall Street's estimates and announced cuts to its global headcount. Dick's expects inventory shrink to worsen before improving and plans to reinvest in talent and technology. Despite the profit loss, the retailer still expects gross margins to increase for the full year.

via CNBC|
#business#cost-restructuring#dicks-sporting-goods
business2 years ago

Target's Q1 earnings beat expectations despite sales warning and retail theft concerns.

Target Corporation reported its Q1 2023 financial results, with sales growth of 0.5% and a 0.7% increase in comparable store sales offset by a decline in comparable digital sales. The company's inventory at the end of Q1 was 16% lower than last year, reflecting a reduction in discretionary categories, partially offset by inventory investments to support rapidly-growing frequency categories. Target is making significant investments in strategies to prevent inventory shrink, which is expected to reduce this year's profitability by more than $500 million compared with last year. The company is maintaining its full-year financial guidance, based on the expected benefit from efficiency and cost-savings efforts and its team's continued focus on agility, flexibility, and retail fundamentals.

via Target Corporate|
#business#earnings#inventory-shrink