Target has recently announced the closure of nine stores located in prominent cities across four different states, citing the rising concerns of theft and organized retail crime, which pose safety risks to both staff and customers, making sustained business operations challenging.
The chain is experiencing significant challenges in managing store crimes, which are adversely impacting their financial outcomes. Notably, stores situated in New York City, the San Francisco Bay area, Portland, and Seattle are facing closures, with retail theft being highlighted as a major reason behind this decision.
“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,” stated Target through a press release.
The issue of crime has continued in spite of initiatives including bolstering the security force, hiring outside security services, and putting in place theft-deterrent equipment.
The following are the precise locations of the impacted stores:
Target CEO Brian Cornell claims that for the past year, there has been a deteriorating trend in the problem of retail theft. “We are all impacted by the issue, which restricts product availability, makes shopping less convenient, and puts our staff and visitors in danger,” Cornell told CNBC.
Target is working with the Homeland Security Investigations section of the US Department of Homeland Security to address these issues. They admit that even with large investments, they are unable to resolve this problem on their own.
Target reported that higher-than-expected theft rates would likely result in a $500 million loss this year, although it did not say whether the impacted shops were underperforming or hitting their revenue targets.
