Target shutters stores, consumers affected as major companies grapple with massive theft losses

Target announced it would be closing nine stores due to theft and violence, and a loss prevention expert says the implications of the decision affect all consumers.

The National Retail Federation says retail theft, violence and crime continue to be growing problems for major businesses. In its annual National Security Survey, the NRF said the average shrink rate in 2022 "increased to 1.6%, up from 1.4%" in 2021, which came out to a staggering $112.1 billion in lost sales in 2022.

The report found external theft, including organized retail crime, to be the leading cause of shrink for the 177 retail brands it surveyed, at an average of 36% of total loss. Employee theft reported in at 29% of shrink loss, while process, control failures and errors came in at 27%, unknown 6% and other sources came in at 1%.