Target, one of the largest retail chains in the U.S., has been dealing with a big problem: theft. To address this issue, Target recently decided to close some of its stores in cities that are mostly run by Democrats. The company felt that it had no other choice because theft and other crimes were making it too hard to keep these stores safe and profitable.
Michael Fiddelke, Target’s Chief Financial Officer, explained that while the company has made some progress in controlling theft, the problem is still significant. “We’ve seen some improvements, but theft is still a big challenge for us,” Fiddelke said. This problem, known as “shrink,” includes not just theft but also damage to goods and mistakes in inventory.
Target has been trying to stop the loss caused by shrink, and their efforts are showing some results. For example, in the last quarter, Target’s profits were better than expected. However, theft has still increased a lot compared to the previous year. Last year, theft cost Target more than $500 million, adding to the already huge $700 million loss from 2022.
Even though Target has been working closely with police and government agencies to fight theft, the company decided to close nine stores. These stores were located in cities like Harlem, New York City; Seattle, Washington; San Francisco, Oakland, and Portland, Oregon.
All of these cities are in states led by Democratic governors and controlled by Democratic state legislatures, which has sparked some debate about whether local leaders are doing enough to stop crime.
The main reason for closing these stores was to protect the safety of both employees and customers. Target stated, “We cannot keep these stores open because the amount of theft and organized crime is putting our team and customers at risk and making it impossible to run a successful business.”
To fight theft, Target has also started using special cases to lock up items that are often stolen. They’ve hired more security guards and trained their staff on how to handle situations safely.
The company is even working with the U.S. Department of Homeland Security to create new technology that could help catch criminals.
Unfortunately, theft is still a huge problem for all retailers, not just Target. A report from the National Retail Federation found that retail theft costs stores across the country a whopping $112 billion every year.
In the end, even with all the efforts to stop theft, Target decided that closing certain stores was the only way to ensure safety and keep the business running smoothly. This decision highlights how serious the issue of retail theft has become, especially in certain cities where crime is a growing problem.
