Target has a theft problem — or at least the retailer's executives want you to believe it does.
The company has repeatedly pointed to shoplifting and organized retail crime as a growing problem that has hurt the chain's bottom line. To address the issue, the retailer at some locations has locked up items in certain categories and limited how many items customers can take through self-checkout.
Target (TGT) -) has even taken the extreme step to close stores in some markets. Chief Executive Brian Cornell has cited retail theft as one of the key reasons for his company's struggles.
Related: Target gives an old-school gift to customers this holiday season
"Through the first three quarters of this year, we've already grown operating income by more than $1 billion compared with last year, despite unexpected headwinds from higher-than-expected shrink and softer-than-expected sales," he said during his chain's third-quarter earnings call transcript.
Target has been open about its plans to aggressively reduce shrink, an industry term that includes employee theft, items lost for other reasons, and shoplifting.
"And so as we've said before, shrink's a lagging metric. We think progress there probably doesn't happen quickly," Chief Financial Officer Michael Fiddelke said. "But we're focused on progress over time, and you'll see us continue to take the actions to get a better outcome there over time, but it's not one that we'd expect overnight,"
One of those actions appears to be a fairly extreme one.
Image source: Shutterstock
Target store adds an age restriction
Over the past year, numerous regional theme parks added rules requiring that minors could be in their parks only when accompanied by an adult over 21. The actual age requirements varied from 16 through 18 and the changes generally were made to curb violent incidents, not theft.
Retail stores, however, have rarely required people under 18 to be accompanied by someone 21 and older. Malls are filled, at least on weekends, with teenagers roaming free with no parent, guardian or adult in sight.
In many ways, Target — with its on-site Starbucks locations and snack counters — has become the new mall. Teens can drop by for a drink, something to eat, and a chance to walk around the store, perhaps buying something, or maybe just window shopping.
At least one Target, however, has decided to prohibit people under the voting age from the store unless they're accompanied by someone who is at least old enough to purchase alcohol.
The store, located in the Bronx, had the following notice, posted on its door, according to a video posted by Business Blurb on Instagram.
"All guests under the age of 18 must be accompanied by an adult at this Target store."
The same location has also taken the extreme step of closing all its self-checkout lanes. Target has generally made decisions about self-checkout and locking up merchandise at the local level (although the company does have a policy on locking up all merchandise in a category, not just select items).
Target did not immediately return a request for comment.
Target's theft problem is real
"In the first five months of 2023, Target stores have seen a nearly 120% increase in retail theft incidents," Online Dasher reported.
Younger people are a part of that problem as "about 25% of shoplifters are underage," according to the same report. Keeping teenagers out without adult supervision, however, ignores that 60% of shoplifting is conducted by people under 30.
"Given the age distribution, prevention efforts should cater to specific age groups," the website shared. "Engagement at a familial and community level can deter potential offenders."
Cosmetics, an area Target has leaned heavily into are the most-stolen item. That's something that retailers can address with how they present those items.
"The prominence of cosmetics in theft suggests reconsidering their placement," Online Dasher shared. "Persistent theft underlines the necessity of technologies like electronic tags."
Target rivals Walmart, Kroger and Best Buy, all of which have addressed increased theft in various earnings calls, have experimented with many of the same theft-deterrent changes. These have included limited self-checkout and locking up some items.
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