Discussion about this post

User's avatar
Gordon Mohr's avatar

Target has absolutely cited rising violent thefts & threats-of-violence in their stores, for example in their August earnings call. (And, if a particular release mainly mentions 'safety', what is that 'safety' from, if not violence?)

Anyone familiar with the area where the SF Target is closing will have no doubts about the veracity of their reports: https://www.sfchronicle.com/sf/article/s-f-target-store-closing-crime-chop-shops-18390645.php

Just 6 blocks away from the Folsom St Target is the Nancy Pelosi Federal Building - where the federal government itself recently urged its employees to work-from-home as much as possible, to avoid crime risks in the surrounding area: https://www.sfchronicle.com/sf/article/drugs-crime-nancy-pelosi-federal-building-18292237.php

Is Biden's Department of Health & Human Services making up false "easy & simple boogeyman" stories about the neighborhood situation? Do they deserve blame because they "haven’t even gotten the authorities involved"?

Expand full comment
Wigan's avatar

This is an interesting ad unique analysis and I like it a lot. But one thing it might be missing is some mention of profit margins. According to Google, profit margins in retail typically range from 0.5% to 3.5%. An assumption embedded in this analysis is that all Target stores have the same margins, and so the stores with the worse theft should shut down. But it's safer to assume that margins vary store-to-store for all kinds of reasons, including theft, and some of the stores with the worst theft may be the most profitable for other reasons and vice versa.

According to Target, their losses from theft almost doubled last year from 500-700 million to 1-1.2B, which is around 0.5% of total revenue. And that comes on the heels of big increases in 2021 and 2022. That might be enough to wipe out profits in some stores where margins were already thin, even if they weren't the stores with the worst theft losses.

Expand full comment
21 more comments...

No posts