A more insidious type of crime is pushing some stores to close

This isn’t theft of need. A more insidious type of crime is pushing some stores to close

Target’s decision to close nine of its stores in major cities,
citing persistent large-scale
theft at those locations,
is the latest signal that retailers may be struggling in their
battle to contain a growing and dangerous problem.
Industry experts say even a small increase in crime can have massive,
cascading effects
that cause retailers to close stores.
It’s proof that store crimes are reaching a new level,
said Bert Flickinger,
retail
expert and managing director of Retail Consultancy Strategic Resource Group.
But store crime is among a host of other challenges,
such as pullback in consumer spending and
excess inventory,
that retailers are also contending with as they try to lift their
store sales and make decisions on which stores to shut down.
And stolen items can have an outsized impact on store profitability,
considering the razor-thin
profit margins many large retailers typically operate at.
Increasing store crime is another variable in play right now for retailers,
Said Zach
Stamber,
senior retail and e-commerce analyst with Insider Intelligence.

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