Target Corporation (NYSE:TGT) stores have increasingly kept merchandise locked up on shelves in order to prevent theft, leading CEO Brian Cornell to make some surprising comments on the company’s third-quarter earnings call this week.
Every shopper knows the experience of trying to pick a deodorant stick or tube of toothpaste from behind the glass, then trekking around the store looking for an employee to open the cabinet.
Cornell, though, says customers have praised the company for locking products up because it keeps them on the shelves and thus available for purchase.
“In the last week I’ve been on the East Coast and on the West Coast ... where items have been locked up,” Cornell said on a call with reporters. “And actually what we hear from the guests is a big thank you, because we are in stock with the brands that they need when they’re shopping in our stores.”
Cornell insists that Target has invested in staffing stores to make sure employees are actually there to open cases for customers.
Target has made loss prevention a priority in recent months. In September, the company announced it would close nine locations in four states due to organized retail theft that it said was “threatening the safety of our team and guests.”
“We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," Target said in a statement at the time.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel