Eye on Retail: Crime bites Target
Target Corp. is taking action in response to theft and organized retail crime which it said is threatening the safety of its employees and customers.
The retailer will close nine stores in cities across four states — New York, California, Oregon and Washington — on Oct. 21. The shutterings include three stores in San Francisco, one in New York City, two in Seattle, and three in Portland. (Exact locations listed at end of article.)
“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,” Target said in a statement.
The retailer defended its decision to close the stores, saying that it has invested heavily in strategies to prevent and stop theft and organized retail crime in its stores, including adding more security team members, using third-party guard services, and implementing theft-deterrent tools across the business such as, on a limited basis, locking cases for merchandise categories that are prone to theft.
List of store closures
Effective Oct. 21, Target is closing the following:
• New York City Market: Harlem, 517 E 117th Street (96 stores remain open the market)
• Seattle Market: Seattle University Way, 4535 University Way NE; and Seattle Ballard: 1448 NW Market St., Ste. 100 (22 stores remain open in the market)
• San Francisco/Oakland Market: SF Folsom and 13th St: 1690 Folsom St.; Oakland Broadway & 27th, 2650 Broadway; Pittsburg, 4301 Century Blvd (32 stores remain open in the market)
• Portland Market: Portland Galleria: 939 SW Morrison St.; Portland Powell, 3031 SE Powell Blvd.; Portland Hollywood, 4030 NE Halsey St. (15 stores remain open in the market)
“Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully,” the retailer stated.
Target announced the store closings the same day that the National Retail Federation released its “2023 National Retail Security Survey,” in which (67%) of respondents said they were seeing even more violence and aggression from ORC perpetrators compared with a year ago. The survey found that total shrink grew to more than $112 billion in 2022, up from $93.9 billion the year before.
On Target's second quarter earnings call in May, Target CEO Brian Cornell said shrink is expected to reduce Target’s full-year profitability by more than $500 million compared to the year-ago period.
Retail Industry Leaders Association (RILA) issued a statement in response to Target's decision to close the nine stores, saying that it "lays bare the substantial problems that exist in communities across the U.S., and the tough decisions that many retailers currently face."
"Organized retail crime, habitual theft and violence are significant challenges for retailers of all sizes, compounded by complex societal issues like mental health, addiction and homelessness," RILA stated.
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This article appeared first in Chain Store Age, sister publication of HBSDealer.
