Target announced on Tuesday that it will be closing nine stores in four states due to a rise in thefts and organized retail crime, which poses a safety risk to both employees and customers.
The closures will take place on October 21 and will affect four stores in San Francisco, three stores in Portland, Oregon, and two stores in Seattle. Despite this, Target will still have a total of 150 stores after the closures.
In a statement, Target explained, “[W]e 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 has made efforts to prevent thefts at these locations by adding security guards and implementing other measures, but unfortunately, these measures have not been effective. The company stated, “Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully.”
This increase in criminal activities at Target stores aligns with a broader trend among retailers, who have reported a rise in crime impacting their business. Whole Foods temporarily closed one of its flagship stores in San Francisco earlier this year due to concerns about crime in the area. Similarly, Dick’s Sporting Goods and Ulta Beauty have also cited increasing theft as a factor in declining profits.
During the pandemic, there has been a surge in “smash-and-grab retail robberies” across the U.S., with organized theft rings targeting major chains.
Target CEO Brian Cornell revealed in August that assaults on Target store workers had increased by 120% compared to the same period last year.
“Our team continues to face an unacceptable amount of retail theft and organized retail crime,” he stated. “Unfortunately, safety incidents associated with theft are moving in the wrong direction.”
A recent survey by the National Retail Federation found that stores reported $112 billion in total inventory losses last year, with internal and external thefts accounting for roughly two-thirds of that figure. This marks an increase from nearly $94 billion in 2021. The survey also highlighted a rise in violent incidents reported by retailers.
“While theft has an undeniable impact on retailer margins and profitability, retailers are highly concerned about the heightened levels of violence and threat of violence associated with theft and crime,” said the NRF.
—The Associated Press contributed to this report.
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