Theft Targets are shutting down

[Anonymous]

Its happening

[Anonymous]

Weird that virtually all of the stock is gone, but some pizza remains. I mean, everyone wants pizza. How is pizza still there when all of the thumbtacks, bathmats, garden hose nozzles, etc, are gone?

[Anonymous]

Never tap anything that says “ tap here for more info”

[Anonymous]

I live in a different city with a bunch of closing Targets that had a lot of theft, but the very most theft-iest ones are *not* the ones closing. My guess is that Target couldn’t get the merchandise mix and real estate costs to work at City Targets but they’re hiding behind “theft”.

[Anonymous]

Target sells pizza?

[Anonymous]

Anonymous wrote:I live in a different city with a bunch of closing Targets that had a lot of theft, but the very most theft-iest ones are *not* the ones closing. My guess is that Target couldn’t get the merchandise mix and real estate costs to work at City Targets but they’re hiding behind “theft”.

This. It's not just Target either.

Looks like a lot of retailers are trying to save face and sell real estate without their stock price tanking.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I live in a different city with a bunch of closing Targets that had a lot of theft, but the very most theft-iest ones are *not* the ones closing. My guess is that Target couldn’t get the merchandise mix and real estate costs to work at City Targets but they’re hiding behind “theft”.

This. It's not just Target either.

Looks like a lot of retailers are trying to save face and sell real estate without their stock price tanking.

Interesting take and makes total sense.

[Anonymous]

"some retail analysts and researchers, bolstered by local crime statistics, say stores may be over-stating the extent and impact of theft. Why? It’s a useful deflection, camouflaging weak demand, mismanagement and other issues denting business right now. And it forces lawmakers to respond.

Across the country, the “actual increase in rates of theft” at stores does not “correspond to the increase in company commentary and actions” on theft, according to a new report by retail analysts at William Blair. “

https://news.wttw.com/2023/10/28/retail-chains-may-be-using-theft-mask-other-issues-report-says

[Anonymous]

Target is closing nine stores. In 2017 they closed 12 stores, so this isn’t out of the ordinary. Target Corporation’s quarterly earnings reports have been great this year. They’ve overcome the excess inventory problems of 2022 and are posting profits such that dividends have increased significantly. Whatever impact theft is is supposedly having, business is still booming.

Target Corporation estimates that inventory shrink could total $1.2 billion this year, an increase of $500 million from last year. It is important to note that “shrink” isn’t all or even mostly theft. It’s loss due to any cause—spoilage, damaged shipments, supplier fraud, sloppy inventory tracking within stores, employee theft, etc. Neither target nor any other retailer squawking about theft has publicly released any data on percentage inventory losses or due to theft or gross value of goods they believe to have been stolen.

Other good context to know is that Target has hundreds of stores in California—proportionally more by population than in other populous states like Texas, New York, and Florida. In fact, there is a location in the Mission just 1.4 miles away from the closing Folsom St. store. In terms of potential customer and sales loss, it’s a lower risk to close a store within an easy commute of another store.

Crying “theft” can help give a reason for less desirable financial performance indicators that doesn’t indict company management. (For example, RiteAid’s debt is too great, and it’s about to get hit with financial penalties from opioid lawsuits.) It can also get desired responses from the public and politicians. As one example, local cops may help look out for shop lifters, saving a store private security expense.

Anyway, the retail theft panic is a manufactured one. That news outlets keep covering it uncritically is journalistic malpractice. I haven’t had a chance to listen yet, but Michael Hobbes is covering the topic on the latest episode of the If Books Could Kill podcast.

[Anonymous]

Anonymous wrote:Target is closing nine stores. In 2017 they closed 12 stores, so this isn’t out of the ordinary. Target Corporation’s quarterly earnings reports have been great this year. They’ve overcome the excess inventory problems of 2022 and are posting profits such that dividends have increased significantly. Whatever impact theft is is supposedly having, business is still booming.

Target Corporation estimates that inventory shrink could total $1.2 billion this year, an increase of $500 million from last year. It is important to note that “shrink” isn’t all or even mostly theft. It’s loss due to any cause—spoilage, damaged shipments, supplier fraud, sloppy inventory tracking within stores, employee theft, etc. Neither target nor any other retailer squawking about theft has publicly released any data on percentage inventory losses or due to theft or gross value of goods they believe to have been stolen.

Other good context to know is that Target has hundreds of stores in California—proportionally more by population than in other populous states like Texas, New York, and Florida. In fact, there is a location in the Mission just 1.4 miles away from the closing Folsom St. store. In terms of potential customer and sales loss, it’s a lower risk to close a store within an easy commute of another store.

Crying “theft” can help give a reason for less desirable financial performance indicators that doesn’t indict company management. (For example, RiteAid’s debt is too great, and it’s about to get hit with financial penalties from opioid lawsuits.) It can also get desired responses from the public and politicians. As one example, local cops may help look out for shop lifters, saving a store private security expense.

Anyway, the retail theft panic is a manufactured one. That news outlets keep covering it uncritically is journalistic malpractice. I haven’t had a chance to listen yet, but Michael Hobbes is covering the topic on the latest episode of the If Books Could Kill podcast.

Agree with you that any broader "retail theft panic" is not as bad as it's made out -- but it's not nothing, either. Maybe you're not aware that in SE DC, grocery stores are fewer and fewer. One remaining Giant in one area of SE has gone 100 percent to Giant's own house brands as an attempt to stop the rampant theft of name brand items. It's been covered a lot in local media here. That's not down to any "manufactured" problem, it's a very real one. (Giant in fact got applauded for not simply closing that store entirely, the theft problem has been so bad there.) So please don't make out that theft isn't happening on scales large enough to have a serious impact. The impact, though, is on the honest shoppers who end up screwed by the thieves' behaviors.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I live in a different city with a bunch of closing Targets that had a lot of theft, but the very most theft-iest ones are *not* the ones closing. My guess is that Target couldn’t get the merchandise mix and real estate costs to work at City Targets but they’re hiding behind “theft”.

This. It's not just Target either.

Looks like a lot of retailers are trying to save face and sell real estate without their stock price tanking.

Yep, it’s largely been debunked that all of these closures are due to thefts. Commercial landlords are revealing some of these occupants balked at higher rents and on some cases were already behind.

[Anonymous]

The “theft” complaints from major retailers do not stand up to scrutiny. CNN posted a thorough explainer yesterday: https://www.cnn.com/2023/10/27/business/crime-spree-retailers-are-actually-overstating-the-extent-of-theft-report-says/index.html

Across the country, the “actual increase in rates of theft” at stores does not “correspond to the increase in company commentary and actions” on theft, according to a new report by retail analysts at William Blair. “Retailers are increasingly vocal on the subject, in part to draw out government action,” the analysts wrote.

[Anonymous]

In our CVS, they've made everything self check out. Maybe that's part of the problem

[Anonymous]

Anonymous wrote:

Target Corporation estimates that inventory shrink could total $1.2 billion this year, an increase of $500 million from last year. It is important to note that “shrink” isn’t all or even mostly theft. It’s loss due to any cause—spoilage, damaged shipments, supplier fraud, sloppy inventory tracking within stores, employee theft, etc. Neither target nor any other retailer squawking about theft has publicly released any data on percentage inventory losses or due to theft or gross value of goods they believe to have been stolen.

Anyway, the retail theft panic is a manufactured one.

What a strange thread. Of course theft has risen massively. Target, and others, are reporting huge shrinkage numbers, in terms of absolute dollars, YoY growth, and as a percentage of sales. Is anyone seriously going to argue that Target has just suddenly forgotten how to refrigerate food? Or that their workers suddenly developed butter fingers and keep dropping big screen tvs? Maybe their truck drivers are suddenly flipping their big rigs at a rate 70% higher than normal???

I’ve worked in operations for 20+ years. Controllable shrinkage like spoilage should be improving every year as a percentage of sales (and almost certainly is). Short of some very specific issue like a new inventory tracking system going live, Target is clearly getting ripped off. Whether from suppliers, employees, or customers, I can’t say, but people are stealing from them.

Target posts 70+% YoY shrinkage growth and 2.2% sales growth, and everyone’s like “The media is dishonest for reporting on rising retail theft!!!” 😂😂😂

[Anonymous]

Our target locks up certain items