‘Organized Retail Crime’ Prompts Target Store Closures
Precise numbers around retail theft are notoriously hard to pin down, yet several big-name retailers have repeatedly cited thievery among their reasons for closing stores or leaving neighborhoods. On Tuesday, Minneapolis-based Target Corp. alleged that the problem has gotten so bad that it needs to close nine stores across four states.
In a news release, the retailer said it’s closing three stores in San Francisco, three in Portland, two in Seattle, and one in New York City due to “theft and organized retail crime.” All the stores are slated to close for good on Oct. 21.
“In this case, 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. “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 said it took several steps to address the problems, but none were apparently successful in stemming the tide of thefts. For instance, the company said it hired more security staff and added “third-party guard devices,” among other measures.
Though Target and other retailers have frequently mentioned increasing theft within recent years, the impact on profit is still unclear. Earlier this year, Walgreens’ finance chief even said the company might have “cried too much last year” about thefts. And, citing a fresh report from the National Retail Federation on Tuesday, CNBC reported that the “effect of theft on retailers’ bottom lines is largely in line with what it has been in past years.”
That same report noted that about 45% of retail respondents said they reduced operating hours due to “retail crime, social and/or physical disorder, or violence.” About 28% said they permanently closed stores for the same reasons.
For their part, Target officials said they’re continuing to lobby Congress for a new law to create a federal agency to tackle retail crime. The retailer also said it has partnered with the U.S. Department of Homeland Security to combat crime, though it didn’t share specifics.
