A few months back, Target Corporation
However, an investigation conducted by CNBC revealed that the reported crime rates are higher at many of the remaining stores situated near the closed ones, according to a report by the news provider.
In certain instances, Target decided to continue running stores located in areas with heavier foot traffic or higher median incomes despite these locations experiencing increased levels of theft and violence, according to the CNBC report.
The report directly raises questions about Target's stated reasons for closing certain stores, casting doubt on whether these closures were driven by security concerns or rather aimed at supporting its legislative agenda and obscure poor financial performance at the stores.
The stores that Target recently shut down were mostly "small-format" outlets, part of an experimental expansion over the past five years into dense, urban areas, the report read.
At the time it announced the nine store closures in September, Target said, "In this case, we cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance. We know that 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."
The news of Target's store closures broke hours after the National Retail Federation released its annual retail security survey, which reported an increase in violence at stores but little change in losses from theft, as per the report.
This announcement came precisely one month before the trade group intended to petition Congress for harsher penalties for organized theft offenders, the CNBC report added.
Only one of the nine stores that Target closed across the four regions, a location in Pittsburg, California, saw more crime and police activity than its closest comparable location, in Antioch, California, according to CNBC's analysis.
Target spokesperson Jim Joyce told CNBC that as a growth company, Target is "continuously opening new stores, initiating remodels, investing in our team and infrastructure, and refining our operations as we seek to deliver the shopping experience that people have come to expect of Target."
"The recently announced store closures related to safety, retail theft, and unsustainable business performance represent less than 0.5% of our U.S. footprint, with 1,956 stores currently operating and serving our guests," Joyce told CNBC.
Price Action: TGT shares are trading lower by 0.98% to $1378.21 on the last check Wednesday.
