Target has announced that it is closing nine stores in major cities across four states. The reason? Thefts and organized crime are making the environment unsafe for employees and customers and unsustainable for businesses, explains a statement released by the company.
The chain is part of a wave of retailers – both large and small – that say they are struggling to contain crimes in their stores.
The stores that Target plans to close include one in East Harlem in New York City, two stores in Seattle, three stores in Portland, and three stores in San Francisco and Oakland.
Nordstrom and Whole Foods have recently closed stores in San Francisco. Dollar Tree has indicated that it might stop selling certain products in some stores due to theft. This week, approximately two hundred business owners in Oakland closed their doors for a few hours and held a protest to draw attention to the crime plaguing the area. Many small businesses, including convenience stores, are victims every day, protesters argued. Last Tuesday (27), looters attacked several stores in Philadelphia.
There is still no data proving that this type of crime is increasing nationally. But as economic difficulties rise due to inflation and interest rate hikes, store thefts often become more prevalent, industry observers say.
The National Retail Federation (NRF), the largest trade group in the retail sector, said on Tuesday (27) that the average shrinkage – a term that refers to merchandise that disappears due to external and internal theft, fraud, damage, and other reasons – cost retailers $112.1 billion in 2022, up from $93.9 billion recorded in 2021. The group said that the average shrink rate in 2022 increased by 1.6%, compared to 1.4% the previous year.
Target warned in May that the company was preparing to lose half a billion dollars this year due to rising thefts.
The NRF said that retailers are also increasingly concerned that crimes in stores are becoming more dangerous and violent, leading them to choose to close stores in particularly vulnerable locations.
What Could Be Behind the Increase in Thefts?
The police believe that changes in punishment laws may also be behind the rise in thefts and organized crime in retail. A criminal justice reform established that judges can no longer jail a person or even require bail, no matter how many times the same individual is arrested for shoplifting.
Source: CNN