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# Target to close 9 stores across 4 states, citing theft Big-box retail chain Target Corp. announced that it will be closing nine of its stores next month due to organized retail theft, which has posed a threat to the safety of its employees and customers. The affected stores are located in New York, Seattle, San Francisco, Oakland, and Portland, and will be closed on October 21. Target assured that eligible team members will be given the opportunity to transfer to other Target locations. In a statement, Target explained that the decision to close these stores was made in order to address the safety concerns caused by theft and organized retail crime. The company emphasized the importance of providing a safe working and shopping environment for all. Target management shared that they have taken various measures to prevent theft, such as hiring additional security staff, utilizing third-party guard services, and implementing other theft-deterrent strategies. They also highlighted that many Target stores in the affected cities will remain open and mentioned their contributions to the local communities through donations and volunteer work. As a result of this announcement, Target’s stock saw a decline of 2.4% on Tuesday. This decision comes after several months of complaints from retail executives regarding the impact of theft on their businesses, particularly during the latest round of retailers’ earnings reports. However, critics argue that crime data can be subjective, and previous reports have indicated that theft rates in 2021 were similar to previous years. During Target’s quarterly earnings call last month, CEO Brian Cornell disclosed that there had been a 120% increase in theft incidents involving violence or threats of violence during the first five months of the year. He expressed concern over the high level of retail theft and organized retail crime that the company continues to face.

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Nike may not be a good investment according to a broker, as a survey found that 90% of consumers with student debt are concerned about meeting their monthly expenses. These concerns may lead to reduced spending on apparel, footwear, accessories, restaurants, and big-ticket items. The survey also showed that 60% of respondents have already started repaying their loans, while 31% have not started budgeting for loan payments. This poses a significant risk to consumer spending in the coming months. Jefferies’ consumer team warns that retailers, particularly Urban Outfitters and Foot Locker, will be heavily impacted by the potential decrease in consumer spending. They have downgraded these stocks and cut their price targets. Nike has also been downgraded by Jefferies, citing tight inventory management and the pressure from student loan repayments on the company’s high-end items. The survey reveals that consumers plan to spend less on apparel/accessories, restaurants, and footwear. Many respondents also plan to buy cheaper alternatives for groceries and apparel/accessories. Discount retailers like Walmart, Target, and Dollar Tree are expected to benefit from this trend. Overall, the stock market is facing headwinds from rising interest rates and DC gridlock, leading to a struggle in stock performance. In terms of the market outlook, Raoul Pal of Real Vision predicts a big seasonal patch to come, with many institutional managers underperforming their benchmarks and potentially being pressured to take risks. In other news, Amazon announced its investment of up to $4 billion in AI startup Anthropic. The week ahead will see several companies reporting earnings, including Costco and Paychex. The data calendar is relatively quiet, with home sales and prices data, Fed speakers, and the central bank’s preferred inflation gauge scheduled for later in the week. China property stocks suffered a significant decline, with China Evergrande dropping 19% after canceling a debt-restructuring plan. According to Jonathan Krinsky, chief market technician at BTIG, the equal-weight S&P 500 is more than 2% below its 200-day moving average, which he sees as an “ominous precedent” that could indicate meaningful downside in the stock market in the coming weeks and months. The most searched tickers on MarketWatch include TSLA, AMC, NIO, NVDA, MULN, AAPL, TTOO, GME, NKLA, and AMZN. In random reads, Lego scrapped its plan to make bricks from recycled bottles due to pollution concerns. The Kansas City Chiefs had a big win against the Chicago Bears, and there’s a proposal for a secret James Bond tunnel to become a tourist attraction. Overall, the market is facing challenges, and the impact of student loan repayments on consumer spending adds to the concerns for the retail sector.

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