As Australian retailers work with various police forces in an effort to combat rampant stealing, Target has decided to shoot nine stores in the USA where retail crime is totally out of control.
Recently the Australian Retail Association, Police and retailers met in an effort to come up with a way to combat the problem.
In the USA retail crime in New York and San Francisco, is so bad that it’s impacting bottom line profits.
A Target spokesperson said overnight “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 retailer said. “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.”
Several big US retailers including Walmart, Target, Best Buy, and Kmart have witnessed dramatic increases in blatant theft at their stores since COVID lockdowns were lifted.
Target claims that organized retail crime is spurring an increase in shrink, an industry term for inventory losses from external and internal theft, damage, and administrative error.
In May, Chief Financial Officer Michael Fiddelke said the blow from shrink would be $500 million worse this year than last year.
Another contributor is the lack of action by New York’s socialist DA Alvin Bragg who has refused to prosecute offenders.
Target said it invested “heavily” in strategies to stop the shoplifting in its stores, adding more security guards and “theft deterrent tools” but to no avail.
Target’s efforts to fight crime included training its employees and security teams on how to “protect themselves and de-escalate potential safety issues” as well as partnering with the US Department of Homeland Security and advocating for the Combating Organized Retail Crime Act in Congress.
The 2,000-store chain has also hosted “store walks” with members of Congress and other legislators and law enforcement to educate them on how it has been fighting crime.
Target was among the first major retailers to publicly blame crime for a deterioration in its financial results, with its chief executive, Brian Cornell, sounding the alarm in May when he said the company would be closely monitoring the “safety” of its employees as it weighs its options.
In August, Cornell said during an earnings call that “violence and threats of violence” surged 120% during the first five months of the year.
“Our team continues to face an unacceptable amount of retail theft and organized retail crime,” Cornell said at the time. “Unfortunately, safety incidents associated with theft are moving in the wrong direction.”
Target’s move to close the nine stores comes on the heels of another massive round of store closures including Rite Aid, which filed for bankruptcy protection and is likely shuttering up to 500 stores in the coming months, according to reports.
The Australian Target stores are owned by Wesfarmers.
