Target CEO Brian Cornell believes that the company has gotten a solid grip on tackling retail theft in its over 1,900 stores across the nation. In a new interview with CNBC, Cornell stated that elevating the conversation surrounding the issue has resulted in “real progress.”
“We’re really pleased with how some of the local DAs (district attorneys) are responding,” he said. “And our teams and other retail teams have actually been walking stores with local DAs to make sure they better understand the challenges we’re facing.”
His comments come amid a recent rise in retail theft across the nation over the past few years. In 2022, retail theft resulted in industry losses of $112.1 billion, compared to $93.9 billion in losses the previous year, according to the National Retail Federation.
On Sept. 26, Target announced that it was closing nine of its stores across four different states due to shoplifting. The company said that the rise in theft was “threatening the safety of our team and guests.” On Oct. 21, it closed three stores in California, three in Oregon, two in Seattle and one in New York City.
Related: Walmart, Dick's and Target have a new answer for retail theft
In Cornell’s interview with CNBC, he said that the company had no other choice but to close those stores, citing that it was a tough decision as the company’s overall goal is to open more stores across the nation.
“They were stores where we made big investments in additional asset protection. working with third-party security, we have used other devices to try to control theft,” he said. “But we closed those stores because we deemed it wasn’t safe for our teams to continue to operate in those environments. And it’s really hard to make a decision to close a store.”
He also said that the company doesn't have any plans to close more stores this year.
Target also revealed in its announcement in September that it promised to invest in technology and coordinate with lawmakers and industry partners to make progress in tackling shoplifting.
In the interview, Cornell applauded the recent passage of the Inform Consumers Act. The legislation makes online transactions more transparent and helps to stop criminals from acquiring stolen or fake goods and selling them through marketplaces. He said that it will make it "much more difficult" for criminals to "monetize the goods that they’re stealing."
He also said that informing lawmakers that the impact of retail theft isn’t just financial has also contributed to the progress he has seen in curbing the issue.
“I think there is a societal impact here,” he said. “So you look at certain cities, where stores have been closing, those jobs go away, the tax dollars are gone, but importantly that local consumer doesn’t have access to the goods that they need.”
