Target Corporation has recently revealed its plans to permanently close two of its Washington stores, which will lead to a total of 90 employees being laid off. This announcement was made public through the Worker Adjustment and Retraining Notification (WARN) system, and the store closures are scheduled to take place on December 30th. Target has taken this decision as part of its continuous evaluation of store performance and in response to the challenges posed by theft and organized retail crime.
List of Closed stores:
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- Seattle University Way: 4535 University Way NE
- Seattle Ballard: 1448 NW Market St, Ste 100
Retail theft data:
According to a report by Capital One, the retail industry has been significantly impacted by retail theft. In 2020, the industry experienced the highest share of revenue loss due to theft, with retailers facing a substantial loss of $94.5 billion in gross revenue in 2021. This marked a 4.07% increase from the previous year. The report suggests that currency inflation has contributed to the escalated value of retail theft.
When it comes to the types of theft, external theft, which includes shoplifting and organized retail crime, accounts for the largest portion of losses, making up 37% of the total. It’s worth noting that 9.09% of Americans engage in shoplifting, and over the five years from 2016 to 2021, 74.1% of retailers reported a rise in external theft.
In 2022, the retail sector in Washington state suffered significant losses from theft, resulting in a staggering $1.685 billion decrease in revenue. On average, each resident accounted for $274.43 in lost sales, which is 20.3% lower than the state average. Washington considers thefts of $750 or more as felonies, further emphasizing the severity of the issue. Additionally, return fraud had a substantial impact on retailers, causing an estimated $1.830 billion in lost sales revenue. As a result, the total retail losses escalated to $3.515 billion. These unlawful activities didn’t only affect businesses, but also had repercussions on the state’s finances. The thefts resulted in a loss of approximately $109.5 million in retail sales tax revenue for Washington. Furthermore, return fraud contributed to an additional $119 million loss in sales tax, culminating in a total of $228 million in sales tax revenue lost for the state. These staggering figures highlight the far-reaching consequences of retail theft and return fraud on both businesses and the overall revenue of Washington state.
Target’s commitment to adapting its operations to maintain a safe and viable business model is highlighted by this development, which underscores the ongoing challenges retailers face in the current economic climate.
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