Retail theft and crime have surged across the United States, forcing many businesses to shutter their doors. In 2025, store and restaurant closures are hitting certain states particularly hard, driven by shoplifting, organized crime, and safety concerns. This article explores the top seven states grappling with closures.
1. California
Why Closures Are Happening: California leads the nation in retail theft, with organized crime rings targeting stores. High-profile smash-and-grab robberies and lenient prosecution policies have emboldened thieves, making it costly for businesses to operate.
Business:
- Business: Target
- City: San Francisco (Democrat-run)
- Reason for Closure: Target closed its San Francisco store at 1690 Folsom St. in 2024, citing “theft and safety concerns for employees and customers.” The city’s struggles with retail theft, including rampant shoplifting, made operations unsustainable.
- Quote: “We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests,” a Target spokesperson said in 2024.
Business:
- Business: In-N-Out Burger
- City: Oakland (Democrat-run)
- Reason for Closure: In-N-Out closed its Oakland location at 8300 Oakport St. in March 2024, the first closure in the chain’s history. The reason was “ongoing issues with crime,” including car break-ins, property damage, and armed robberies.
- Quote: “Despite taking repeated steps to improve safety, we’ve seen no meaningful improvement,” said In-N-Out Chief Operating Officer Denny Warnick.
2. New York
Why Closures Are Happening: New York, particularly New York City, faces rising retail theft driven by teen gangs and organized crime. Shoplifting incidents have skyrocketed, and businesses report inadequate law enforcement response.
Business:
- Business: Rite Aid
- City: New York City (Democrat-run)
- Reason for Closure: Rite Aid closed multiple NYC locations, including one at 4046 Broadway in Manhattan, in 2024. The pharmacy chain cited “persistent theft” and unsafe conditions as key factors.
- Quote: “Retail theft has made it impossible to operate profitably in some areas,” a Rite Aid executive noted during bankruptcy proceedings in 2023.
Business:
- Business: Starbucks
- City: Buffalo (Democrat-run)
- Reason for Closure: Starbucks shuttered its store at 1600 Hertel Ave. in 2024, pointing to “safety concerns due to repeated theft and vandalism.” The location faced frequent shoplifting incidents.
3. Illinois
Why Closures Are Happening: Chicago’s high crime rates, including retail theft and violent incidents, have driven businesses out. Lenient policies on prosecuting shoplifters has made the situation worse.
Business:
- Business: Walmart
- City: Chicago (Democrat-run)
- Reason for Closure: Walmart closed four Chicago stores in 2023, including one at 8431 S. Stewart Ave., due to “significant theft and financial losses.” The stores were targeted by organized theft rings.
- Quote: “These stores lose tens of millions of dollars a year, and their losses nearly doubled in the last five years,” Walmart stated.
Business:
- Business: Whole Foods
- City: Chicago (Democrat-run)
- Reason for Closure: Whole Foods closed its Englewood store at 832 W. 63rd St. in 2023, citing “untenable safety risks” from theft and violent incidents.
4. Washington
Why Closures Are Happening: Seattle and other Washington cities face rampant shoplifting and property crimes. Businesses report insufficient police support and rising costs to combat theft.
Business:
- Business: Walgreens
- City: Seattle (Democrat-run)
- Reason for Closure: Walgreens closed its store at 222 Pike St. in 2023, blaming “uncontrolled shoplifting” and safety risks for employees.
- Quote: “The level of theft makes it impossible to maintain a safe and viable business,” a Walgreens spokesperson said.
Business:
- Business: Bartell Drugs
- City: Seattle (Democrat-run)
- Reason for Closure: Bartell Drugs shut down its downtown location at 1628 5th Ave. in 2024, citing “frequent theft and security issues.”
5. Oregon
Why Closures Are Happening: Portland’s struggles with crime, including shoplifting and vandalism, have pushed businesses to close. Decriminalization policies have been linked to increased retail theft.
Business:
- Business: REI
- City: Portland (Democrat-run)
- Reason for Closure: REI closed its store at 1405 NW Johnson St. in 2023, citing “record-breaking theft” and safety concerns for staff and customers.
- Quote: “The level of crime has made this location unsustainable,” an REI representative stated.
Business:
- Business: Cracker Barrel
- City: Portland (Democrat-run)
- Reason for Closure: Cracker Barrel closed its Jantzen Beach location at 700 NW 17th Ave. in 2023, pointing to “crime-related incidents” and declining sales.
6. Pennsylvania
Why Closures Are Happening: Philadelphia’s rising crime rates, including shoplifting and smash-and-grab thefts, have forced retailers to scale back. Businesses cite weak prosecution of theft as a factor.
Business:
- Business: Wawa
- City: Philadelphia (Democrat-run)
- Reason for Closure: Wawa closed its store at 1501 N. Broad St. in 2023, citing “continued safety and security challenges” from theft and loitering.
- Quote: “We cannot continue to operate in an environment where crime goes unchecked,” a Wawa spokesperson said.
Business:
- Business: CVS
- City: Philadelphia (Democrat-run)
- Reason for Closure: CVS closed its location at 1901 W. Oregon Ave. in 2024, due to “persistent shoplifting” and safety risks.
7. Minnesota
Why Closures Are Happening: Minneapolis has seen a spike in retail theft and violent crime, driving businesses to close. Retailers report challenges with enforcement and rising operational costs.
Business:
- Business: Aldi
- City: Minneapolis (Democrat-run)
- Reason for Closure: Aldi closed its store at 3120 Penn Ave. N. in 2024, citing “frequent theft” and safety concerns for employees.
- Quote: “The ongoing crime issues have made this location unviable,” an Aldi representative noted.
Business:
- Business: Cub Foods
- City: Minneapolis (Democrat-run)
- Reason for Closure: Cub Foods shut down its store at 5937 Nicollet Ave. in 2024, due to “escalating theft and security incidents.”
3 Unique Facts About Retail Theft and Closures
- Theft Doesn’t Always Drive Closures: Some data suggests that stores closing due to theft often have lower theft rates than nearby stores that remain open. For example, a 2024 report found that Target’s closed stores had less theft than operational ones, suggesting other factors like profitability also play a role.
- Organized Crime Rings Are a Growing Threat: Retail theft is increasingly driven by sophisticated crime syndicates, not just individual shoplifters. These groups resell stolen goods online, costing retailers billions annually.
- Political Divide in Response: Democrat-run cities often face criticism for lenient theft policies, while Republican-run areas tend to push stricter enforcement. However, closures occur in both, indicating crime’s complex impact.
Additional Important Information
- Economic Impact: Retail theft costs U.S. businesses over $100 billion annually, with 2024 seeing a 15% increase in incidents compared to 2023. This drives up prices for consumers.
- Policy Debates: Some states, like California, have faced backlash for Proposition 47, which reduced penalties for shoplifting under $950. Critics argue this encourages theft, while supporters say it reduces prison overcrowding.
- Retailer Responses: Chains like Target and Walgreens are investing in anti-theft measures, such as locking up merchandise or hiring private security. However, these add costs, further straining profitability.
- Community Effects: Closures leave communities with fewer shopping and dining options, disproportionately affecting low-income areas where replacements are slow to arrive.
The surge in retail theft and crime is reshaping America’s retail landscape, with California, New York, Illinois, Washington, Oregon, Pennsylvania, and Minnesota bearing the brunt of store and restaurant closures. Real-world examples like Target in San Francisco and In-N-Out in Oakland highlight the toll of unchecked crime. As businesses struggle, the debate over enforcement, policy, and safety intensifies. Addressing this crisis will require a balanced approach to protect businesses, employees, and communities.
Source
For more information visit news.harvard.edu and blog.faithandfreedom.us
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