Dec 12, 2023
Nike is permanently closing its beloved Portland factory store — one year after it shuttered the location, apparently due to a problem with theft.
Multiple news outlets published statements from the store’s local business association and the company itself confirming the closure.
Advertisement
It seems retail giant — like so many other major brands — may have taken a hit to its bottom line due to a dangerous surge in petty theft shoplifting and organized retail crime.
The Nike (NYSE:NKE) store, which opened in 1984 and quickly became a local institution, first closed in October 2022 with no official statement other than a message on the company's website saying “Closed for the next 7 days” — but the store never reopened.
At the time, local news station KGW-TV reported thieves were “stealing armloads of Nike merchandise and walking out the front door with no fear of being stopped.”
Here’s what may have prompted Nike’s decision.
'A major economic blow'
Nike officials sent a letter to Portland Mayor Ted Wheeler in February, confirming they’d closed the factory store the previous October because of “deteriorating public safety conditions and rapid escalation in retail theft,” according to KGW-TV.
The retailer allegedly requested off-duty police officers to provide security — which Nike would pay for — but the city could not spare any law enforcement officers.
The Soul District Business Association (SDBA) released a statement, according to multiple news outlets, calling Nike’s departure “a major economic blow.” SDBA director John Washington said the news “landed like a lead balloon” and that “we had all been holding our breath since … the store quietly shuttered its doors due to internal and external theft and safety issues.
Advertisement
“But, like so many of us riding out the fallout of the pandemic and protests, we held out hope that Nike, city officials and community leaders would recalibrate and realign order. But it looks like it's game over."
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Retail challenges
Nike would by no means be alone in experiencing an alarming uptick in retail crime — and rising concern over the issue is happening all over the country.
According to a report from the NRF, a majority of retailers surveyed between 2020 and 2022 reported annual increases in organized retail crime activity at their stores.
Many cities have seen retail store closures in recent months — with rampant crime being just one of the major factors in this.
In addition to theft concerns, retailers across the U.S. are also struggling to regain the same levels of footfall that they enjoyed pre-pandemic.
Correction, Dec. 12, 2023: An earlier version of this story incorrectly stated that the NRF estimated “theft” was costing the retail industry $100 billion. In fact, it estimated that “shrink” was costing the industry $100 billion. Shrink refers to loss of inventory and can include, but is not limited to, theft.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Bethan Moorcraft is a reporter for Moneywise with experience in news editing and business reporting across international markets.
