Blaming shrink may be a way to not spook the market for issues with their business:

> Target’s business has struggled for more than a year with company-specific challenges, including a glut of unsold inventory, backlash to its Pride merchandise collection and a pullback in consumer spending on discretionary items such as apparel and home goods.

https://www.cnbc.com/2023/09/26/target-says-it-will-close-ni...