Target will close nine stores in major U.S. cities including two in Seattle because of crime and safety concerns, the company said Tuesday.
The Seattle stores are in Ballard, at 1448 N.W. Market St., and in the U-District at 4535 University Way N.E. The locations will close on Oct. 21, Minneapolis-based Target said.
"Theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," Target said in a statement Tuesday.
Eligible employees will be able to transfer to other Target locations, according to the company. Twenty-two stores will remain open in the Seattle area. Target said the remaining stores employ nearly 4,000 people.
Before deciding to close the stores, Target said, it invested in strategies to increase safety in stores, such as adding more guards and implementing theft-deterring tools. It wasn't enough, according to the company.
In addition to the two Seattle stores, Target is shuttering three stores in Portland, two in San Francisco and one store in each of New York and Oakland, Calif.
Target's Ballard and U-District stores opened in 2019 and are considered small-format stores — locations in dense urban and suburban areas ranging from 21,000 to 49,000 square feet.
"Our stores serve an important role in their communities, but we can only be successful if the working and shopping environment is safe for all," Target said in a statement.
Target's decision to leave other Seattle locations open despite higher crime incidents in their neighborhoods raised questions Tuesday. Three Target stores — Northgate, Westwood Village and downtown — were among the top 10 retail locations served by patrol units in 2022, according to a Seattle Office of City Auditor report from July. Northgate had the most calls for service and patrol unit service hours of the three locations, according to the report.
Target did not respond to inquiries about why it chose the two Seattle locations.
Target's crime incidents at its 1,948 total stores nationwide have increased 120% during the first five months of 2023 compared to the same period a year ago, Target chair and CEO Brian Cornell said in a call with investors in August.
Besides theft, Target has also struggled with backlash to its Pride collection, which was affecting employees' safety, Cornell said in August.
In the most recent quarter reported in August, Target's comparable sales declined 5.4% compared to the same period last year. Its revenue of $24.8 billion also fell 4.9%.
An annual survey by the trade group National Retail Federation showed U.S. retailers are closing stores, cutting hours and changing product selections in response to an increase in crime. The survey collected insights from 177 retail brands across 28 different retail sectors.
Shoplifters were "much more" aggressive and violent in 2022 compared to 2021, the study showed. One source of increased theft is organized retail crime, especially in Los Angeles, the San Francisco Bay Area, Houston, New York and Seattle, according to NRF.
Cornell said in May theft and organized crime were contributing to Target's inventory shrink.
"The problem affects all of us, limiting product availability, creating a less convenient shopping experience and putting our team and guests in harm's way," he said in May. "When products are stolen, simply put, they're no longer available for our guests who depend on them."
At the time, Cornell said Target was advocating for public policy changes. One of the bill proposals nationwide seeking to address the issue is the Combating Organized Retail Crime Act, which establishes a multi-agency response to crime.
Shrink — a measurement of lost inventory — for total retail sales in 2022 reached $112.1 billion, up from $93.9 billion in losses in 2021, according to the NFR study.
Statewide, the Washington Retail Association says theft costs businesses $2.7 billion a year.
Seattle police data shows shoplifting incidents from January to August were down 60% compared to the same period last year. In the U-District, they were down 40% compared to the same period last year. In downtown, where retailers including Nike have closed because of crime, shoplifting incidents were down 35%, according to SPD data.
Some retailers say they may not always report incidents of theft to the police.
Councilmember Alex Pedersen, who represents the district that includes the U-District, said in a statement that Seattle is still recovering from an increase in crime because of defunding. Pedersen is not seeking re-election next year.
"I encourage all businesses to stay here," Pedersen said, adding the city needs to take steps such as restaffing the police department to "prove Seattle prioritizes safety to support its residents as well as the employers providing jobs and revenues to our city."
Councilmember Dan Strauss, who represents the district that includes Ballard, said he has been working with the Ballard Alliance and has hired a public safety coordinator to improve safety in Ballard.
"Yet there is more to do, and we plan to expand on this work as we begin crafting the budget over the next two months," Strauss said in an email. He is an incumbent in next year's city council elections.
The Target closures join a running list of shuttered retail locations in the Seattle area. Last year, Starbucks closed six Seattle stores citing safety concerns. In January, Nike closed its store on the corner of Sixth Avenue and Pike Street.
Rite Aid, owner of Bartell Drugs, has closed at least nine Bartell stores in the Seattle area since September 2022, including a Ballard location right across the street from the Target location slated for closure.
Seattle Times reporter Paul Roberts contributed to this report.
