Target (TGT) announced the closure of nine of its U.S. locations, citing safety concerns for its employees arising from retail theft and organized crime. Target previously made efforts to combat theft, but these measures proved ineffective. Team members affected by the closures will be provided the option to transfer to another company store. Within the past year, inventory shrinkage has cost the company approximately $700 million. Yahoo Finance Reporter Brooke DiPalma explains the impact of retail theft on Target and other major retailers, revealing staggering losses amounting to $112 billion with 67% of these losses directly linked to incidents of retail theft, as reported by the NRF. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Corrections can be healthy as the broader indexes are still up nicely for the year and investors may get an opportunity to buy the dip in several intriguing stocks near their 52-week highs.
Most stocks are up significantly from their 52-week lows as stocks surged through the first half of the year, but one well-known retail stock is getting left behind: Target (NYSE: TGT). It's understandable why the stock is plumbing new depths. Consumer spending has shifted away from discretionary goods toward services such as travel and necessities such as food and gas.