![]() Target didn't mention any plans to close down stores in high-crime areas but did say it is focused on managing the financial impact theft has on the business. "We are making significant investments in strategies to prevent this from happening in our stores and protect our guests and our team." "While there are many potential sources of inventory shrink, theft and organized retail crime are increasingly important drivers of the issue," Target CEO Brian Cornell said in a statement. ![]() Last year Walmart saw shares drop as it cut its profitability outlook amid skyrocketing inflation. The city’s plan combines increased law enforcement efforts and enhanced social service programming designed to prevent shoplifting, particularly by individuals struggling with substance use disorders, serious mental illness, homelessness or poverty.Walmart plans to close 'underperforming' store locations The initiative was rolled out after more than 70 retailers, law enforcement officials, union leaders and business improvement districts convened in December to discuss a solution to retail theft. In New York City, mayor Eric Adams on Wednesday outlined a plan to combat retail theft and organized crime rings. ![]() (Its website currently leads to a dead end.)Įarlier this month, Nordstrom said it would close two stores in downtown San Francisco, citing changing dynamics in the city’s market. FN has reached out to Nike for a comment regarding the status of this store. It will take communities stepping up and enforcing the law to be able to bring this issue back under control.”Ī Nike Community Store in Northeast Portland was also reportedly impacted by waves of crime in the region, which likely prompted the closure of the store for weeks, between October and November, KGW8 reported. “We know a lot of communities have been affected by this, but it’s also important to note that retail can’t solve this issue all on its own. CEO and president, John Furner, in a Thursday call with analysts discussing the company’s first-quarter earnings results. “It’s been challenging really for all of retail,” said Walmart’s U.S. Like Target, Walmart noted that the solution to combating the issue needs to be a collaborative process across retail. communications director said these stores, located at Hayden Meadows and East Port Plaza, were underperforming and did not confirm if the closures were a result of increased retail crime in the city.) The news came months after Walmart CEO Doug McMillon told CNBC that its stores were grappling with an increase in organized retail crime. Walmart said in March that it would close the last two of its stores in Portland by March 24. In certain markets like Portland, Ore., and San Francisco, waves of crime have prompted some retailers to wind down their businesses there. And then, of course, we are also very focused on the employee and customer safety in our stores, along with the customer satisfaction.” ![]() “We’re continuing to look for newer ways to protect our merchandise. “We are laser-focused on our shrink initiatives, which are the increase of tagging, tethering, the use of hard cases and increased loss prevention presence,” said TJX EVP and CFO John Klinger in a call with analysts. ![]() Maxx, Marshalls and HomeGoods, also highlighted headwinds from retail shrink in its first-quarter earnings call on Wednesday and projected impacts to profit in a similar range to the prior year. The National Retail Federation’s 2022 National Retail Security Survey found that retail shrink, when taken as a percentage of total sales in 2021, accounted for $94.5 billion in losses in 2021. Other large chains are in a similar position. Last year, Target noted that shrink impacted its gross margin by at least $400 million.Ĭornell also noted that “violent incidents” have increased at Target stores and elsewhere across the industry. The company said it expects a $500 million hit to profitability this year compared with the prior year. In a release discussing its first-quarter results, Target said retail shrink - or when stores have fewer products than recorded in inventory books - has intensified across its store base, largely driven by organized retail crime. Over $1B in Counterfeit Luxury Shoes, Bags & More Seized From Manhattan Storage Unit ![]()
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