The US has a growing theft problem.
Target highlighted growing 'organized theft' in its latest earnings call and now it's backing it up with actions. The retail giant will close nine stores:
- Three in the San Francisco bay area
- Three in Portland
- Two in Seattle
- One in New York City
The company still has a huge number of stores in all those markets and all the workers will be offered transfers but theft is a real problem in the US and it will get worse when a recession inevitably comes.
"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. 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."
Interestingly enough, a retail survey today indicated that nationwide theft isn't rising. I think the problem is still localized but I've been to San Francisco and seen it first hand. Businesses can't operate in that environment and it's a cancer that can't be allowed to spread.
Earlier today, CVS pharmacy also announced it would close 10% of stores due to theft.
