Target executives forecast that retail theft will cause the company to lose out on $500 million in profit this year.

The retail giant’s CEO, Brian Cornell, discussed the issue with reporters Wednesday where he said last year’s $700 million in “inventory shrinkage” — an industry term that covers merchandise theft and product damages — means the company will suffer over $1.2 billion in lost profit for 2022-23.

“The unfortunate fact is violent incidents are increasing at our stores and across the entire retail industry. And when products are stolen, simply put they are no longer available for guests who depend on them,” Mr. Cornell told the media.

Major retailers such as Lowe’s, Walmart, Best Buy, Walgreens, CVS and Home Depot have also expressed concern about criminals who ransack their stores, sometimes violently by using weapons or having a mob rush into the establishment. 

A report from the National Retail Foundation found that store theft accounted for $94.5 billion in losses in 2021, up from $90.8 billion in 2020. 

“The country has a retail theft problem,” Home Depot Chief Financial Officer Richard McPhail told CNBC Tuesday. “We’re confident in our ability to mitigate and blunt that pressure, but that pressure certainly exists out there.”

Stores in certain high-crime areas have started locking up items behind plastic doors to prevent theft. Other methods include motion sensors and additional security guards.

• Matt Delaney can be reached at mdelaney@washingtontimes.com.