Target says shoppers appreciate locking up its products
Target says its customers like what the company is doing to curb retail theft at its stores.
Theft has been on the rise since the pandemic and some of the biggest retailers in the country have had to take drastic measures in order to curb the costly epidemic.
In 2022, retail theft resulted in industry losses of $112.1 billion, compared to $93.9 billion in losses the previous year, according to the National Retail Federation.
Related: Target CEO has surprising words on retail theft
But Target CEO Brian Cornell has been touting his company's response to the threat over the past few weeks, saying that he has gotten a solid handle on tackling the issue of retail theft at the more than 1,900 stores he overseas.
In order to curb theft, Target, and many other retailers, have resorted to placing some of the stores most stolen items behind locked glass enclosures. The enclosures are ugly, and some customers have said that they would stop shopping at stores with the security feature.
On Wednesday, Cornell told CNBC that not only are the enclosures working, but also that Target shoppers are very appreciative of the effort.
"Just in the last week I’ve been on the East Coast and on the West Coast in many of those stores that you’ve talked about where, items have been locked up. And actually what we hear from the guests is a big thank you," Cornell said on a media call after the company's earnings release Wednesday. 
"Because we are in stock with the brands that they need when they’re shopping in our stores. And because we’ve invested in team member labor in those aisles and make sure we’re there to greet that guest, open up those cases and provide them the items they’re looking for."
But there is also evidence that some shoppers don't really appreciate the glass enclosures that keep shoppers (and thieves) from easily accessing everyday items like deodorant.
More than a quarter of consumers surveyed in August by Coresight Research said that they would shop elsewhere if their local store started putting items under lock and key.
But the enclosures are a better alternative than one other tactic Target has tried in recent months: closing stores.
On Sept. 26, Target announced that it was closing nine of its stores across four different states due to shoplifting. The company said that the rise in theft was “threatening the safety of our team and guests.” On Oct. 21, it closed three stores in California, three in Oregon, two in Seattle and one in New York City.
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
What's Your Reaction?
