US Markets
Tuesday, December 19th, 2023 3:44 pm EDT
Key Points
- Target’s Decision to Close Stores Questioned: Target’s announcement of closing nine stores in four states due to theft and organized retail crime, made on September 26, raised national concerns. However, a CNBC investigation spanning several months challenges Target’s explanation, revealing that the closed stores generally experienced fewer reported crimes than nearby ones that remained open. This finding raises doubts about the validity of Target’s claims and suggests a potential link to the company’s legislative agenda against organized retail crime.
- Concerns Raised About Target’s Motives: CNBC’s investigation questions whether Target’s announcement of store closures was designed to advance its legislative agenda, seeking a crackdown on organized retail crime, while possibly obscuring poor financial performance. The report suggests that Target chose to keep open stores in busier areas with better foot traffic or higher median incomes, even if these locations experienced more theft and violence. This prompts scrutiny of Target’s motives behind the store closures and whether they were a strategic move to divert attention from financial challenges.
- Discrepancies in Crime Data and Target’s Claims: The investigation reveals discrepancies between crime data and Target’s stated reasons for closing specific stores. While Target claimed safety concerns due to theft and organized retail crime as the primary reasons for closures, the analysis of crime statistics and 911 call data indicates that nearly every closed store saw less police activity and fewer reported crime incidents than nearby locations that remained open. The lack of transparency in Target’s disclosure of internal crime figures adds to the skepticism surrounding the company’s motives and the accuracy of its public statements.
Target’s decision to close nine stores due to theft and organized retail crime, as announced in September, is questioned by a CNBC investigation. The analysis of crime statistics and 911 call data for 21 Target stores across New York City, Seattle, the San Francisco Bay Area, and Portland, where closures occurred, reveals that the locations shuttered generally experienced fewer reported crimes than nearby ones that remained open. The report raises doubts about Target’s claims and suggests that the announcement may have been a strategy to support its legislative agenda against organized retail crime while masking poor financial performance. Target spokesperson Jim Joice defended the closures, emphasizing the severity and variation of store-level incidents and the company’s ongoing efforts to address theft and organized retail crime. The investigation highlights discrepancies between crime data and Target’s stated reasons for closing specific stores, potentially impacting public perception and regulatory discussions surrounding organized retail crime.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/19/target-store-closures-theft-and-crime-higher-nearby.html
