Retail giant Target says it will close its East Harlem location next month along with eight other stores across the country, citing “theft and organized retail crime.” The announcement comes as the latest in a string of complaints from retailers about theft eating into profits.
The company wrote on its website that it faces “fundamental challenges” to operating its stores safely.
Target reported “better-than expected profitability in the face of softer-than-expected sales” last month, but CEO Brian Cornell warned of “safety incidents” in a call with investors.
“During the first five months of this year, our stores saw a 120% increase in theft incidents involving violence or threats of violence,” he said. Using the industry term “shrink” for lost or stolen products, he added that profits “expanded by more than $800 million compared with a year ago. And despite the fact we’ve experienced more than a percentage point of cumulative profit pressure from higher shrink since 2019.”
Still, the company plans to open another outlet in Harlem at 125th Street and Lenox Avenue — just 1.5 miles from the location it plans to close at the East River Plaza.
A spokesperson for the company did not immediately respond to a request for comment.
The East 117th Street store opened in 2010 to much fanfare from neighbors.
“This store has been a lifeline for many East Harlem residents, providing jobs and stability for their families,” said Deputy City Council Speaker Diana Ayala, whose district encompasses East River Plaza.
Natasha Sam, who has lived in this corner of Manhattan for 25 years, said Target is one of the few places people in the area can go for affordable goods.
“Before, you used to have to go into the city to get some stuff that we don’t have in the neighborhood,” she said. “It’s just heartbreaking.”
Sam doubted the company’s claim about theft being the reason for closing the store.
“I don’t think it’s from theft because it has to be too much for a big company like that to close because of theft,” she said.
Early on Wednesday morning, three store employees and an NYPD officer were watching the front door. Employees say they are not allowed to interfere with thefts, which were a daily problem until NYPD posted the officer recently.
“They would just come with a trash bag, fill it up with anything, and just walk out the store,” said Miguel de la Cruz, who delivers Target products for the service Shipt. “That was pretty bad. So it makes sense that they closed it.”
This year the National Retail Federation reported that retail crime accounted for 36% of product loss while employee theft came in at 29% and process errors amounted to 27% of losses.
According to its website, Target also plans to open stores in Chelsea, Astoria and Union Square. The company says employees will be able to transfer to other stores.
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