Target to Close 9 Stores Nationwide Citing Violence and Theft
North Miami Beach, Florida – Target, the popular department store chain, announced on Tuesday that it will be closing nine of its stores in major cities across the United States. The decision comes as the company cites concerns over violence, theft, and organized retail crime. The closures will include one store in New York City’s Harlem neighborhood, two locations in Seattle, three stores in the San Francisco-Oakland area, and three more in Portland, Oregon. The stores are set to permanently close their doors on October 21.
In a press release, Target stated, “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. We know that our stores serve an important role in their communities, but we can only be successful if the working and shopping environment is safe for all.”
Target, which operates nearly 2,000 stores nationwide, has been vocal about the issue of organized retail crime plaguing its locations. The company claims that theft has led to higher levels of shrink, resulting in significant losses from damaged, misplaced, or stolen goods.
The decision to close stores comes after Target’s CEO, Brian Cornell, addressed the rise of organized retail crime during the company’s fiscal second-quarter earnings in May. Cornell expressed Target’s reluctance to shutter locations, emphasizing the importance of their stores within their communities. However, he acknowledged the need to closely monitor the safety of both their team members and customers, as well as the impact on their business.
Target’s decision to explicitly blame retail crime for the store closures sets them apart from other retailers facing similar challenges. The company’s support for the passage of the Combating Organized Retail Crime Act demonstrates their commitment to combatting the issue. The act proposes stiffer penalties for theft offenses, increased thresholds for federal theft cases, and the establishment of the Organized Retail Crime Coordination Center.
The rise in organized retail crime has prompted other states to pass similar legislation, imposing stricter penalties for these offenses. Retailers and trade associations have played a significant role in advocating for these bills, with store closures being a factor that motivates lawmakers to take action.
While theft and organized retail crime have been major concerns for Target, the company has also faced other challenges impacting its business. Issues such as unsold inventory, backlash to Pride merchandise collections, and decreased consumer spending on discretionary items have contributed to the company’s struggles.
Target has implemented various measures to address crime at their stores, including locked merchandise cases, third-party guard services, de-escalation training for store leaders, and investments in cyber defense. However, these efforts have proven insufficient in ensuring the safety and success of the affected stores.
Despite the closure of these stores, Target has expressed its commitment to assisting employees in finding opportunities at other Target locations. The company has yet to reveal specific plans for improving inventory management.
As Target joins the list of retailers closing stores in major cities, including Walmart, Nordstrom, and Walgreens Boots Alliance, the impact of theft and other challenges on their bottom line cannot be ignored. However, the National Retail Federation’s latest survey indicates that the effect of theft on retailers’ profits remains relatively consistent. Total retail shrink in 2022 amounted to over $112 billion, calculated as a percentage of sales, which falls within the normal range for the industry.
It remains to be seen how Target and other retailers will navigate the ongoing challenges of organized retail crime while ensuring the safety and profitability of their stores. Legislative reform, increased security measures, and collaboration among retailers and law enforcement will likely play a vital role in combating this issue.