The American retail corporation said one New York City store, two Seattle stores, three Bay Area stores, and three Portland stores will be closed by the 21st of October.
Target, an American retail corporation, said on Tuesday that they will be closing down 9 locations in four states as mounting thefts and organized retail crime in these locations are jeopardizing the safety of workers and customers.
According to Forbes, the American retail corporation, which has nearly 2,000 stores in the US, has fell short in sales estimate last quarter, the financial burden that attributed to this was the increased levels of shrink (a term used to describe loss of inventory due to shoplifting, return fraud, or employee theft).
The American retail corporation said that in May it expected related theft losses to a total of $500 million more than last year, a projection that could mean $1.2 billion in losses if it came true. Target’s retail theft concern is one that is difficult to properly quantify outside of reports and projections made by retailers themselves. Marshall Project reported in February that the difficulty comes from most police departments not distinguishing between retail theft and other robberies.
The American retail corporation’s shares closed down more than 2 percent on Tuesday, trading at $109.48 by market close. The American retail corporation’s stock has trended downwards since February, when it was trading $181/share.
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The American retail corporation said that they have added security guards and have taken other measures in a bid to prevent thefts at the said stores closing down, however, it was to no avail.
According to CBS News on MSN.com, the American retail corporation said they can’t continue operating the stores because theft and organized retail crime are threatening the safety of the team and guests, contributing to unsustainable business performance. They know that their stores serve as an important role in communities, however they can only be successful if the working and shopping environment is safe for everyone.
The rise in shoplifting and other incidents at the American retail corporation’s locations comes as other retailers say a rise in crime is hurting their businesses. Target CEO Brian Cornell said that the assaults on Target workers increased 120% over the first five months of this year compared with last year.
The CEO said that the American retail corporation continues to face unacceptable amount of retail theft and organized retail crime, unfortunately, safety incidents associated with theft are moving in the wrong direction.