Target is closing nine of its stores in major cities due to persistent large-scale theft at those locations, highlighting the growing problem of store crime.
Experts note that even a small increase in crime can lead to store closures and have a cascading impact on retailers.
The rise in store crime includes "organized retail crime" (ORC), where groups target high-value merchandise and resell stolen products on secondary markets or back into the legitimate supply chain.
Smash-and-grab attacks have occurred in shopping malls and high-end stores in cities like Los Angeles, Chicago, and New York.
Smaller businesses are also at risk, as seen with the looting of Pennsylvania Liquor Control Board stores.
Several large retail chains, including Dick’s Sporting Goods, Five Below, Dollar General, and TJX Companies, have warned about the seriousness of theft issues.
Target, which operates nearly 2,000 stores in the US, estimated a $500 million loss in 2023 due to rising theft.
Industry estimates suggest that total annual shrinkage costs retailers $112.1 billion in losses in 2022, up from $93.9 billion in 2021.
Retailers are taking various measures to mitigate theft, but these actions may also deter shoppers.