Target announces closure of 9 stores due to theft and organized retail crime

Samantha Kubota
·3 min read
2

Target plans to close nine stores across four states in October, the company announced in a release on Sept. 26.

The stores, located in Washington, Oregon, California and New York, will close on Oct. 21.

The statement says the company took the decision to close nine locations "very seriously" and only after "taking meaningful steps to invest in the guest experience and improve business performance."

"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," the statement reads. "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 release said Target hired additional security guards and added theft-deterrent tools like locking glass cases. The company also says store leaders and security teams were trained to protect themselves and "de-escalate potential safety issues associated with organized retail crime incidents."

Target's Quarterly Earnings Rise 14 Percent (Chris Hondros / Getty Images)
Target's Quarterly Earnings Rise 14 Percent (Chris Hondros / Getty Images)

Target also says the company invested in "cyber defense" to combat organized retail crime and partnered with the Department of Homeland Security's division to combat retail theft. The company says it additionally made various community investments, like the creation of an outreach coordinator team that "connects guests experiencing hardship to community resources."

TODAY.com reached out to Target for further comment regarding the closures but did not hear back.

Stores impacted by the closures:

New York City, New York:

  • Harlem — 517 E. 117th St.

Seattle, Washington:

  • Seattle University Way —4535 University Way NE

  • Seattle Ballard — 1448 NW Market St.

San Francisco/Oakland, California:

  • SF Folsom and 13th St. — 1690 Folsom St.

  • Oakland Broadway and 27th — 2650 Broadway

  • Pittsburg — 4301 Century Blvd.

Portland, Oregon:

  • Portland Galleria — 939 SW Morrison St.

  • Portland Powell — 3031 SE Powell Blvd.

  • Portland Hollywood — 4030 NE Halsey St.

Employees at all the closing stores will be allowed to transfer to another Target location, the release states, and every city impacted by the closures still has other locations of the popular retailer.

CNBC reported in mid-May that the company specifically cited organized retail crime as an issue impacting its bottom line at the end of the second quarter. CEO Brian Cornell told CNBC and other outlets that the reduced profitability — down around $500 million from the year prior — was at least in part due to organized retail crime.

When asked if the company plans to close stores because of rising shrink, Cornell told the outlet of Target’s reluctance to shutter locations.

“We do not want to close stores. We know how important our stores are. They create local jobs, they generate taxes, they’re very important for those local shoppers, and they play a critical role in communities across the country,” Cornell said on a call with reporters in May.

Cornell also cited the backlash the company faced in late May over its Pride month merchandise, including some items which were later pulled due to threats to employees.

Cornell told CNBC “negative reaction” to Target’s Pride collection also had an impact on sales.

This article was originally published on TODAY.com