Target Stock Loses $30 Billion in 6 Months as ‘Violence, Robbery’ Soars | spcilvly

In recent months, Target Corporation (NYSE: TGT) has seen a significant decline in its stock market performance, notably lagging the strong gains seen in the broader S&P 500 index throughout 2023.

This downward trend can largely be attributed to changing consumer confidence, weak business sales, and weakening demand for certain product categories. Additionally, widespread boycotts against the controversial Pride-themed children’s clothing line also played a role.

However, a less discussed factor has also played a role in Target’s woes: the substantial losses suffered by organized retail crime and store thefts, adding an additional layer of challenge to the company’s performance in 2023. .

Target closed several stores due to organized retail crime

In May 2023, Target said it expected to suffer losses of $1.3 billion due to “theft and organized crime.” At the time, the retail giant said its profits would lose $500 million more than in 2022, when it took an $800 million hit due to an “inventory reduction.”

Since this warning, TGT shares have plummeted considerably.

Notably, the company lost $30 billion in market value in 6 months since the theft activity accelerated, falling from nearly $170 each to the current $106.6. Kobeisi’s letter noted on October 4.

The fall of TGT since May. Source: Kobeissi’s letter

In percentage terms, the stock is down more than 35% on the 6-month chart.

“In August, Target said stores saw a 120% increase in violent robberies in the first five months of 2023.”

– added Kobeissi.

Most recently, Target closed 9 stores in 4 states, including some in New York and San Francisco, citing increasing violence and theft as main reasons.

“We cannot continue to operate these stores because retail theft and organized crime threaten the safety of our team and our guests and contribute to unsustainable business performance.”

– Target stated in a press release.

Stock Target Price Analysis

At the time of this publication, Target shares were trading at $106.62, down 0.5% over the past 24 hours.

The stock fell more than 2.4% in the last 5 days and almost 15% for the month.

1 month TGT price chart. Source: Finbold

At its current price, TGT is trading just above a 3.5-year support level, located at around $105.7. Losing this ground would pave the way for the stock to fall towards the next support near $90.10.

On the upside, the stock is facing a short-term resistance zone around $122.

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