Discount giant Target is closing nine stores in four major markets coast to coast, blaming theft and violence that it said risks the safety of its customers and employees, as retail crime nationally soared to an estimated $112.1 billion in losses last year.
The Minneapolis-based chain, with roughly 2,000 stores, on Tuesday said it would be shuttering one location in New York City; two in Seattle; and three each in the San Francisco Bay area and Portland, Oregon. Those stores will close effective Oct. 21.
Target cited prioritizing employee and customer safety as its reasons for shutting down select stores. In its statement, the retailer said it takes decisions to close stores "very seriously, and only does so after taking meaningful steps to invest in the guest experience and improve business performance."
However, circumstances warranted closing the nine stores, according to Target. The chain touched on the public service that retailers can provide in communities, a role that can leave some companies facing both criticism for closing stores and questions on whether they use the crime and violence issue as an excuse to eliminate less profitable locations.
"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," the retailer said.
It also said: "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, as well as other retailers ranging from Walmart to Macy's, and the retail industry in general has been sounding an alarm about organized retail theft and rising incidents of violence, most recently during second-quarter earnings calls, with some seeing profits take a hit. The National Retail Federation on Tuesday reported that losses from retail theft last year were up, to $112.1 billion from $93.9 billion in 2021, according to its survey. Cities such as San Francisco and Chicago have already experienced a spate of store closings because of crime.
On at least one earnings call, Target had said it might be forced to shutter stores because of retail theft. Earlier this year, the company reported that it expects "inventory shrink," or losses, to reduce its profitability by $500 million this year compared with last year. That would take its shrink losses to more than $1 billion for 2023.
“Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire," David Johnston, NRF vice president for asset protection and retail operations, said in a statement. "Far beyond the financial impact of these crimes, the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category.”
The Target stores slated for closure are:
- New York City, Harlem, 517 E. 117th St.
- Seattle, University Way, 4535 University Way NE.
- Seattle, Ballard, 1448 NW Market St.
- San Francisco, Folsom and 13th Street, 1690 Folsom St.
- Oakland, California, Broadway and 27th Street, 2650 Broadway.
- Pittsburg, California, 4301 Century Blvd.
- Portland, Galleria, 939 SW Morrison St.
- Portland, Powell, 3031 SE Powell Blvd.
- Portland, Hollywood, 4030 NE Halsey St.
The top five cities or metropolitan areas affected by organized retail crime in the past year were Los Angeles, San Francisco/Oakland, Houston, New York and Seattle, according to the NRF.
"Before making this decision [to close the nine stores], we invested heavily in strategies to prevent and stop theft and organized retail crime in our stores, such as adding more security team members, using third-party guard services, and implementing theft-deterrent tools across our business," Target said. "Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully."
Eligible employees at the closing locations will have the opportunity to transfer to other Target locations.
The retailer said it has more than 150 locations open in markets where the closures are taking place.