Target announced that it will be closing nine stores in major cities across the country due to violence, theft, and organized retail crime. The affected locations include Harlem in New York City, Seattle, the San Francisco-Oakland area, and Portland, Oregon. Target cited the safety of its team and guests, as well as unsustainable business performance, as the reasons behind the closures. The company has been vocal about the increase in organized retail crime at its stores, resulting in higher levels of shrink. Target’s decision to both close stores and explicitly blame retail crime sets it apart from other retailers.
The company has supported proposed legislation that aims to address organized retail crime by implementing stiffer penalties and creating a formal venue for information exchange. Store closures have been influential in motivating lawmakers to support these measures. Target’s business has faced challenges recently, including excess inventory and reduced consumer spending. The company has implemented various measures to combat retail crime, but they have not been sufficient at the affected locations. Target intends to support affected employees by offering opportunities to transfer to other store locations.
The announcement of closures coincided with the release of the National Retail Security Survey, which highlighted the ongoing impact of theft on retail sales. Target joins a growing list of retailers, such as Walmart, Nordstrom, and Walgreens, that have closed stores in major cities. These closures are attributed to factors such as market dynamics and unprofitability.