Dive Brief:

• Target is closing nine stores across four states due to theft and organized retail crime threatening the safety of employees and shoppers, according to a Tuesday announcement. 
• The retailer noted that it “invested heavily” in measures to prevent theft and organized retail crime but still faced challenges in “operating these stores safely and successfully.” 
• Retailers are continuing to take vigorous steps to protect themselves in the face of rising losses from theft and ORC, which according to the National Retail Federation hit $112.1 billion last year.

Dive Insight:

The closures, which will take effect Oct. 21, will impact one store in New York City; two in Seattle; three in the San Francisco/Oakland, California, area; and three in the Portland, Oregon, region, according to the announcement.

In announcing the closures, Target outlined ways it will continue to combat theft and ORC across its chain, including through in-store initiatives, technological advancements and partnering with surrounding communities as well as government officials, lawmakers and law enforcement. 

In-store efforts include investing in additional security team members, tapping third-party guard services, implementing tools such as locking cases on a limited basis and training store leaders and security staff to protect themselves and de-escalate potential safety issues, per the press release. 

Target’s tech-focused efforts include include bolstering its cyber defense, partnering with the U.S. Department of Homeland Security’s Homeland Security Investigations division and advancing threat intelligence capabilities to track ORC groups and other criminal or fraudulent activity. 

Target’s Outreach Coordinator team will continue connecting guests experiencing hardship to community resources, a program the retailer launched in 2021, per the press release. Target also voiced support for the recent passage of the INFORM Consumers Act and is advocating for the Combating Organized Retail Crime Act in Congress alongside the establishment of ORC task forces at state and local levels. 

“[W]e cannot solve this issue on our own,” Target stated in the announcement. The retailer stated it would host store walks with Congress members, state legislators, city officials, district attorneys, law enforcement and local community partners to highlight its ORC and theft prevention efforts as well as advocate for solutions. 

Target is offering all eligible store employees affected by the store closures transfer opportunities to other Target locations, according to the announcement. The retailer also noted that there are more than 150 locations open in the markets where these upcoming closures are taking place. 

Retailers are bolstering their efforts to combat theft and ORC in a number of ways, including improving computer vision at self-checkout kiosks and establishing ORC teams to work in tandem with local law enforcement to catch ORC crime rings. 

However, store closures due to safety concerns caused by theft are continuing. A California Whole Foods store shut its doors in April citing safety concerns and stated it would only evaluate reopening if the safety of staff can be ensured.