Target Closes Nine Stores in Face of Rampant Theft

Target announced it is closing nine Target stores across four states, effective Oct. 21, after experiencing widespread theft at the locations.

These properties are in Seattle, Portland, New York City, and San Francisco. It will continue to operate its other 150 stores nationwide.

“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 company said.

The retailer said it had “invested heavily in strategies to prevent and stop theft and organized retail crime” in its 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.”

It is not alone. Organized theft has become a problem across the retail industry, with the National Retail Federation’s National Retail Security Survey reporting that the average shrink rate in FY 2022 increased to 1.6%, up from 1.4% in FY 2021 and in line with shrink rates seen in 2020 and 2019.

When taken as a percentage of total retail sales in 2022, that shrink represents $112.1 billion in losses, up from $93.9 billion in 2021.

“While retail shrink encompasses many types of loss, it is primarily driven by theft, including organized retail crime ,” according to the survey.

Many retailers have been forced to take more drastic action, including reducing operating hours in some locations (45%), reducing/altering the availability of products in stores (30%), or even closing some locations (28%).

Vicky Hammond, Managing Principal, Coreland Companies, tells GlobeSt.com that combating retail crime and ensuring property safety is a high priority for each of her clients.

Coreland is a leading leasing and property management company serving California shopping centers. It operates 130 properties.

“All properties are facing these rapidly growing trends, no matter the location of the property, density of the area, or tenant mix,” Hammond said.

“It is our responsibility to consistently evaluate the safety of the environment as real estate managers. Increasing security is an obvious first step, but issues cannot always be addressed with traditional tools.” Coreland Companies recently introduced off-site security and AI-powered security monitoring at select properties, in tandem with on-site personnel. At other properties, it has proactively engaged with law enforcement to meet with tenants regularly and provide security training.

“It is not a surprise that Target and other retailers have made such bold moves,” Hammond said.

“The losses and risks are dramatic. For the sake of our communities and our businesses, we must also advocate for legislative changes.”

As an example, ICSC is supporting efforts behind the “Combating Organized Retail Crime Act of 2023” to give judges, prosecutors, and law enforcement the tools needed.

Sean Unsell, Senior Studio Director and Associate Principal, RDC, tells GlobeSt.com that from high-end department stores to smaller family operators there has been a significant increase in incidents involving theft and vandalism.

“Some strategies that have been implemented recently include increased surveillance of stores through facial recognition technology,” Unsell said.

“Lockable shelving to store items that are subject to theft has increased tremendously in the past year. News that Walmart plans to install an actual police department substation in their stores may be a signal to the future design of retail.

“We may also see an increase in fulfillment stations where the actual merchandise is secured in the backroom and may be picked up after payment. One thing for sure is that retail theft needs to be taken seriously and the operators need to find a strategy to combat the frequency that we are seeing this occur throughout the retail community.”

Target also will support the recent passage of the INFORM Consumers Act, which gives marketplaces a larger role in combatting the second-hand sale of stolen goods, and will advocate for the Combating Organized Retail Crime Act in Congress, which creates a taskforce of federal agencies to crack down on theft and organized retail crime.