Target to Close Nine Stores Due to High Levels of Theft and Organized Retail Crime
Target has announced that it will be closing nine stores across the United States next month due to significant issues with theft and organized retail crime at those locations. The affected stores include three in California’s Bay Area, three in the Portland area, two in Seattle, and one in New York City. The closures will take effect on October 21.
According to Target, the high levels of theft at these locations pose a threat to the safety of both their team members and customers, and have also had a negative impact on the stores’ overall performance. Despite investing in theft prevention strategies, the company continues to face significant challenges in operating these stores safely and successfully.
In May, Target had already projected that shrink, which encompasses shoplifting, employee theft, organized retail crime, and process mistakes, would reduce its full-year profitability by over $500 million compared to 2022.
In related news, the National Retail Federation recently released its National Retail Security Survey for 2023, revealing that the average shrink rate in retailers’ 2022 financial year was 1.6 percent, up from 1.4 percent the previous year. However, this increase is relatively consistent with trends from the past few years. In terms of total retail sales, this shrink rate translated to $112.1 billion in losses, widening from $93.9 billion in 2021.
Target’s decision to close these nine stores is a strategic move aimed at addressing the ongoing challenges posed by theft and organized retail crime. The company remains committed to providing a safe and secure shopping experience for its customers while ensuring the sustainability of its business operations.