Target announced on Tuesday its decision to shutter nine of its stores, across four Democrat-led states, in October, citing escalating safety concerns and unsustainable business performance due to rampant “organized retail crime.”
In a company statement, Target said that it took the decision to close its retail stores “very seriously,” having tried and failed in its efforts to stop theft and safeguard the customer experience and business performance.
The primary cause behind these closures is the pervasive issue of “theft and organized retail crime,” which not only risked the safety of Target’s employees and customers but also eroded the viability of these specific stores, contributing to “unsustainable business performance.”
Before making its decision, Target said it took extensive measures to counter theft and organized retail crime. This included increasing the number of security team members, employing third-party guard services, and deploying theft-deterrent tools across their business operations.
“Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully,” the company stated.
“The team members at these stores have worked hard to maintain our high standards by creating a positive working and shopping experience for each other, our guests, and their communities,” the statement continued. “We are extremely thankful for their efforts and will be partnering closely with all eligible team members to offer them an opportunity to transfer to other Target locations.”
The closures, scheduled for Oct. 21, will affect specific stores in New York, Washington, California, and Oregon.
One store in Harlem, New York, will shutter its doors. Meanwhile, two stores in Seattle, specifically the Seattle University Way and Seattle Ballard branches, are part of the closures.
In California, a trio of locations will be affected: the Pittsburg, San Francisco Folsom, and Oakland Broadway stores. Lastly, the Portland market will see the closure of three locations: the Portland Galleria, Portland Powell, and Portland Hollywood stores.
In addition to the store closures, Target unveiled a comprehensive strategy to combat theft and organized retail crime going forward.
This strategy encompasses investments in payroll for additional security personnel, enhanced training for store leaders and security staff, cyber defense measures, and collaborations with law enforcement agencies, including the U.S. Department of Homeland Security’s Homeland Security Investigations division.
Furthermore, Target has been actively engaging with government officials, lawmakers, and industry partners to address the issue on a broader scale.
Initiatives include supporting legislation like the INFORM Consumers Act and the Combating Organized Retail Crime Act, as well as establishing Organized Retail Crime Task Forces at the state and local levels.
Organized Retail Crime
Organized retail crime is on the rise, costing retailers $720,000 per $1 billion in sales, a 50 percent increase since 2015, according to the bipartisan Combating Organized Retail Crime Act introduced by Sens. Catherine Cortez Masto (D-Nev.) and Chuck Grassley (R-Iowa) in January.A companion bill was introduced in the House of Representatives in February and enjoys support from various industry and law enforcement groups.
The Combating Organized Retail Crime Act aims to establish the Organized Retail Crime Coordination Center within Homeland Security Investigations. This center will bring together expertise from federal, state, and local law enforcement agencies and the retail industry to formulate a unified national strategy against organized retail crime.
The National Retail Federation reported that in 2022, retail theft and inventory loss, often referred to as “shrink,” surged to $112.1 billion. This marked a notable increase from $94.5 billion in 2021 and $90.8 billion in 2020.
Additionally, a striking 81 percent of retailers reported witnessing elevated levels of violence in 2022. Approximately 67 percent of these retailers noted a heightened prevalence of violence and aggression attributed to organized retail crime perpetrators compared to the previous year.
In California, where Target is closing three stores, a 2014 law, known as Prop. 47, raised the minimum threshold for felony theft from $400 to $950, which critics attribute as the main cause of a rise in petty theft in the state.
One California Democrat has now expressed regret for supporting Prop. 47, following an explosion of retail theft. In August, San Mateo County Supervisor David Canepa said he “made a mistake” supporting the measure and called for reclassifying felony theft to combat organized retail theft and enhance safety.
He told Fox News that criminal mobs had “taken advantage of Prop. 47 because they know that if they do get arrested, they can simply walk out of jail the next day and only face misdemeanor charges.”
In May, Nordstrom closed its 35-year-old flagship store in downtown San Francisco due to concerns about “unsafe conditions.”
Meanwhile, in a repeated setback this year, a Democratic lawmaker’s attempt to amend Prop. 47 through Assembly Bill (AB) 2718 failed for the fifth time.
The bill, AB 2718, aimed to classify petty theft and shoplifting as “serial theft,” with prosecution for property valued over $500 if the offender had two or more prior theft convictions, lowering the threshold set by Prop. 47.
In April, Assemblyman Jim Cooper (D-Elk Grove), the bill’s author, expressed his frustration, suggesting a reliance on fictional superheroes like Batman and the Avengers for justice.
