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MINNEAPOLIS — Target Corp. is closing nine stores in four states later this month, saying theft and organized retail crime are making the locations unsustainable and threatening the safety of employees and customers.
Target set October 21 as the closing date for one store in Manhattan, two in Seattle, three in the Bay Area and three in Portland, Ore. Eligible team members are being offered jobs at other Target locations, the company said.
Target said the decision to close the stores was difficult.
“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 company said. “Before making this decision, 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. Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully.”
Retailers in the United States are experiencing “unprecedented” levels of theft and encountering more aggressive behaviors from thieves, the National Retail Federation (NRF) said last month in releasing its annual security survey.
According to the survey, the average shrink rate was 1.6% last year, up from 1.4% in 2021. The average rate of shrink was 1.6% in 2019 and 2020. As in previous years, internal and external theft last year accounted for nearly two-thirds of retailers’ shrink, NRF said, which calculated that the total value of merchandise unpaid-for due to theft, damage and inventory tracking mistakes topped $112 billion in 2022.
As retail crime continues to evolve in scope and sophistication, so are retailers’ prevention efforts, according to the survey.
“Retailers are piloting and implementing a number of loss-prevention practices to deter, prevent and mitigate these substantial losses,” said Read Hayes, a University of Florida research scientist and the director of the Loss Prevention Research Council. “In addition to enhancing traditional security measures, many are also allocating resources to innovative emerging technologies for future prevention.”
When asked about resource allocation to address risks, 34% of respondents said they have increased internal payroll, while 46% have increased the use of third-party security personnel. Slightly more than half said they increased their technology and software-solution budgets. With violence being one of the most concerning risks, 54% have increased or are increasing employee workplace violence training.
Retailers reported being forced to close a specific store location (28%), reduce operating hours (45%), or reduce or alter in-store product selection (30%) as a direct result of retail crime. The industry sees policy reform is a “critical component” of any solution to the problem, NRF said.
Target in May said it expected shrink-related losses in 2023 could be $500 million more than last year, when losses from shrink were in the range of $700 million to $800 million.
Target’s nine store closures are as follows:
New York City: Harlem, 517 East 117th Street.
• Seattle: University District, 4535 University Way N.E.; and Ballard, 1448 N,W. Market Street.
• Bay Area: San Francisco, 1690 Folsom Street; Oakland, 2650 Broadway; Pittsburg, 4301 Century Boulevard.
• Portland: Galleria, 939 S.W. Morrison Street; Powell, 3031 S.E. Powell Blvd.; Hollywood, 4030 N.E. Halsey Street.
