Key Takeaways TGT expects shrink to fully normalize in fiscal 2025, supporting gross margin stability.Lower shrink added about 70 bps to the gross margin in 3Q25, offsetting higher markdown pressure.TGT projects 80-90 bps of gross margin benefit from shrink improvements in FY25.Target Corporation’s (TGT) ongoing shrink normalization is shaping up as one of the most visible contributors to near-term margin stabilization, even as top-line trends remain pressured. After multiple years of elevated shrink, manag ...