Target Corporation quantified the impact of organized retail crime and the lesser component of shoplifting on financial performance in recent quarterly reports.  The first of national retailers to highlight this growing expense, Brian Cornell, CEO, expected that crime would reduce annual profit by more than $500 million in Fiscal 2023.  Target has decided to close nine locations among the 2,000 in operation.  These include a location in Harlem, New York City, two in Seattle, three in San Francisco-Oakland and three in Portland, Oregon.  The stores will cease operation by October 21^st.

In announcing store closures, Cornell stated, “We do not want to close stores since we know how important they are.  They create local jobs, generate taxes and are important for local shoppers playing a critical role in communities across the country.”  He added, “We will continue to do everything in our part to keep our doors open.”  He warned “At the same time we will be closely monitoring the safety of our team and customers as well as the financial impact to our business as we determine the right path forward.”

Legislative initiatives to reduce organized retail crime include the Inform Act requiring online marketplaces to disclose identities of high-volume sellers.  The Combatting Organized Retail Crime Act is also under consideration and is supported by the National Retail Federation.  Many states are revising laws to impose harsher penalties for organized retail crime. Shoplifting and organized retail crime frequently taking on the proportion of mass looting imposed additional costs on U.S. retail operations approaching $110 billion in 2022.  This cost is borne by shareholders of retail chains and shopkeepers and is ultimately passed on to consumers, adding to inflation.