Macy’s Inc.’s decision to close its iconic store at San Francisco’s Union Square has thrust the issue of retail theft into the spotlight once again, although the union representing workers at the store thinks that shoplifting may have simply provided an excuse for its closure.
“I think it gives them the excuse to do what they wanted to do for the last few years,” Jim Araby, director of strategic campaigns at United Food and Commercial Workers Local 5, told MarketWatch. “I don’t deny that [shoplifting is] happening, I don’t deny that it’s having an impact, … but I don’t think it is enough impact on their bottom line to want to close their store.”
On Tuesday, the San Francisco Standard reported that “rampant” shoplifting is to blame for the store’s planned closure, citing workers at the store. However, San Francisco Mayor London Breed told TV station KRON4 that the closure was not related to crime.
“I think it’s sad that after decades of being an iconic brand in an iconic city like San Francisco, that Macy’s decided to close the store entirely and walk away,” Araby said.
UFCW5 has approximately 400 members at the Union Square store. Araby told MarketWatch that the store’s closure was communicated to workers Tuesday, the same day that Macy’s
M,
announced plans to close 150 stores. The San Francisco store will likely cease operations this year, according to Araby.
Macy’s said the closure of 150 “unproductive” stores by 2026, including 50 by the end of the current fiscal year, is part of a plan to boost growth and revitalize the brand. Macy’s has not announced which stores will be closing. The company has not yet responded to requests for comment on this story.
Related: Retail ‘shrink’ is about much more than theft, analysts say
Analysts have said there is much more to retail-industry shrink than simply theft. A Target announcement about the closure of nine stores across four states, for example, was scrutinized last fall in light of local crime and foot-traffic data.
Macy’s shares are down 7.4% Wednesday. The stock is up 18.4% over the last three months, outpacing the S&P 500 index’s
SPX
gain of 11.3%.
This story originally appeared on Marketwatch
