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Target blamed theft and violence for 9 store closures. Crime is higher at locations it kept open nearby
Target blamed theft and violence when it closed 9 stores in New York, Seattle, San Francisco and Portland, but crime is worse at locations it kept open nearby.
www.cnbc.com
On Sept. 26, Target set off a national firestorm when it said it would close nine stores in four states because theft and organized retail crime had made them too dangerous to run.
On its face, Target’s announcement was evidence that retail crime was preventing one of the country’s most prominent retailers from operating stores profitably and safely. It challenged skeptics who believed that retailers had exaggerated the impact of organized retail crime and used it as an excuse for poor financial performance.
There was just one problem with the explanation Target gave for closing stores: The locations it shuttered generally saw fewer reported crimes than others it chose to keep open nearby, a monthslong CNBC investigation has found.
CNBC’s findings cast doubt on Target’s explanation and raise questions about whether the company’s announcement was designed to advance its legislative agenda — seeking a crackdown on organized retail crime — and to obscure poor financial performance at the stores as it grapples with sliding sales.