Three Target Stores in Bay Area to Close Due to Retail Theft Threat
SAN FRANCISCO (KGO) — Target, the Minneapolis-based retail giant, has announced the closure of three stores in the Bay Area due to the increasing problem of retail theft and organized retail crime. The company stated on its website that the safety of its team and customers, as well as unsustainable business performance, were the main reasons behind this decision.
The stores that are slated to close next month are as follows:
1. San Francisco:
– 1690 Folsom St. (Folsom and 13th St)
2. Oakland:
– 2650 Broadway (Oakland Broadway & 27th)
3. Pittsburgh:
– 4301 Century Blvd
While these closures may come as a disappointment to the communities they serve, Target emphasized the importance of maintaining a safe working and shopping environment for everyone. Despite the closure of these three stores, 32 Target locations in the Bay Area will remain open, preserving the jobs of over 6,400 employees.
In addition to the Bay Area, stores in New York City, Portland, and Seattle will also be impacted by closures. Target has made significant investments in strategies to prevent and combat theft and organized retail crime, such as increasing security team members, utilizing third-party guard services, and implementing theft-deterrent tools throughout its business.
However, the company’s efforts have not been enough to overcome the challenges posed by retail theft. High-profile smash-and-grab robberies and flash mob thefts have drawn national media attention to the issue. Several retailers, including Dick’s Sporting Goods and Ulta Beauty, have highlighted rising theft as a factor in shrinking profits.
According to the National Retail Federation, inventory loss or “shrink” reached an average rate of 1.6% in 2021, amounting to $112.1 billion in losses. While this represents an increase from $94 billion in 2020, it has consistently stayed below 2% of total sales over the past seven years.
The NRF’s latest security survey revealed that only 36% of shrink in 2022 can be attributed to external theft, including organized retail crime. The remaining 64% arises from sources such as employee theft and losses. However, the survey lacks specific information on the retailers involved and the cities affected, making it an estimate rather than a comprehensive collection of all retail theft incidents.
In response to the growing issue of organized retail crime, Target has ramped up its cyber defense efforts and partnered with the U.S. Department of Homeland Security’s Homeland Security Investigations division. Additionally, Congress passed the INFORM ACT last year, which aims to combat the sale of counterfeit and dangerous goods online by imposing verification requirements on sellers.
While retailers continue to improve their loss-prevention measures, the NRF reported that nearly 30% of surveyed retailers have been forced to close specific store locations, and 45% have had to reduce operating hours. Approximately 30% also had to change or reduce product selection due to retail crime.
The closure of these Target stores in the Bay Area serves as a reminder of the ongoing challenges retailers face in combating theft and organized retail crime. By closing these locations, Target hopes to redirect its resources towards ensuring the safety and success of its remaining stores while continuing to provide employment opportunities for thousands of individuals.