Target shared Tuesday that it will close nine stores across four states on October 21, citing theft as the main driver of the decision, reports The New York Times. Stores in Manhattan, San Francisco, Seattle, and Portland, Oregon are slated to close.
“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 said in a statement. Target added that theft at the locations was harming its business and threatening employee and customer safety.
In an earnings call in August, chief executive Brian Cornell said the company “continues to face an unacceptable amount of retail theft and organized retail crime.” The retailer has voiced concerns over large amounts of merchandise being stolen with the aim of being sold on the black market.
The retailer has increased its spending on security, contracting third-party guard services at many locations. CFO Michael Fiddelke said in May that if the shrink trend continued, the chain would lose $500 million in profit. Shrink is the term for the unaccounted loss of inventory, often through employee or customer theft.
According to Target, “eligible team members” would be offered jobs at other store locations. Full Story (Subscription Required)
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