Target closing 9 stores indicates a larger issue in these major cities
The big-box retailer has decided to close nine stores — and with that decision comes a litany of criticism and fear.
If you live in a densely populated area and you think you have fewer stores to choose from these days, you probably got that right.
A rise in theft, shoplifting and other property crimes has caused an increase in inventory shrink, the retail industry's term for lost or stolen goods. That surge, in turn, has prompted many stores to close.
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In its annual report the National Retail Federation trade group says "retail crime, violence and theft continue to impact the retail industry at unprecedented levels." The "average shrink rate in [fiscal] 2022 increased to 1.6% [from] 1.4% in FY 2021."
And it isn't just property crimes that are hitting retailers; an uptick in workplace violence, harassment, and other incidents that make both employees and shoppers feel unsafe has been steadily rising as well.
Some 88% of retailers reported to the NRF that shoplifters were more aggressive and violent compared with 2022. Property crime tends to escalate into violent crimes, too. Shoplifting incidents that involved some type of violence also increased 35% year-over-year.
And it's getting harder to be an employee, too. A recent Retail Workplace Survey shows that 60% of retail workers encountered a form of violence on the job during the past year. Those incidents included:
- 23% of those surveyed said they were a victim of verbal assault
- 14% said they were a victim of physical assault
- 10% said they were the victim of bullying or emotional assault
- 3% said they were the victim of a sexual assault
These numbers are alarming, to be sure. So when a large retailer like Target (TGT) - Get Free Report decides to shutter nine locations in areas particularly vulnerable or hard-hit by theft and crime, it puts into perspective how widespread this problem is.
Target closes nine stores — and raises eyebrows
Effective Oct. 21, Target will shutter nine stores in four states to weather the storm.
"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 said in a Wednesday statement.
"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 added that it first took many steps to aid help prevent organized retail crime, including investing in enhanced security, locking up merchandise, and training employees.
"Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully," Target said, adding, "we cannot solve this issue on our own."
The nine stores are located in the Seattle, New York, San Francisco/Oakland, and Portland metropolitan areas.
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Some residents have questioned the motives for shuttering, arguing crime might be cited as a convenient excuse for underperformance. Others, however, claim Target's decision is a symptom of a much larger issue.
"It’s proof that store crimes are reaching a new level," Burt Flickinger, managing director at the New York retail consultants Strategic Resource Group, said.
Others argue that a large store like Target pulling out could cause an entire neighborhood to crumble.
"It’s like throwing a pebble in water and seeing the ripples from it," University of Florida criminologist Read Hayes said.
"If a large anchor store in a mall pulls out, this reduces foot traffic to the mall. Other stores then pull out. Over time, it could result in abandoned building, blight and other crime. Store closures create circles of concern."
Former New York City Council Speaker Melissa Mark-Viverito mourned the loss, saying "Target was a staple" that provided "a lot of jobs" and well-priced items that were "important to the community."
Target has not said whether it plans to reopen the stores if organized retail crime subsides.
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