Target announces closing of only East Palo Alto store in September

EAST PALO ALTO, Calif. (KGO) — Target announced this week the closing of its sole store in East Palo Alto.

The store is located just off Highway 101 in a busy shopping center.

The closure has serious consequences for the working-class city that has been struggling for years to change its reputation.

For East Palo Alto residents, Target is not just a store. It’s a destination.

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“Everybody goes here to shop. It’s just a store you go to. It really helped us a lot when it came in. And it’s going to be gone soon,” said Aliyah Calvillo Figueria.

But the Target store will close in September.

“To lose a name like Target, with its reputation, with its visibility, for a city like ours is unfortunate. It’s the reality,” said Mayor Antonio Lopez.

Lopez says he got a call from Target on Monday. “Underperforming,” he was told. But when Target closes, there will be just one pharmacy for a town of 28,000. And few grocery stores in a town once described as a food desert.

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“Because if Target closes now, there will be no grocery store in this area,” Sophie Wong said.

“One reason is poor efficiency. Another reason could be theft. In general, the e-commerce model that is emerging is also changing the way retail (stores) operate,” said CSUEB business professor Balaraman Rajan.

Rajan said it shouldn’t be a shock that Target is closing. He said Target opening in that location means there’s data to support it could be successful. But as new business models emerge in the wake of the pandemic, companies are reassessing.

“This isn’t something that’s going to stop in East Palo Alto,” Rajan said. “These are pickup locations, not curbside shopping. I think that’s something that stores are going to be looking at as well.”

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“For a place like East Palo Alto, a working class of color that has only been around for 40 years, it was really hard to preserve and survive — given that it was so connected to so much wealth — it was a challenge,” Lopez said.

Lopez said the news of Target’s closure comes as the city is working on a new economic development plan. But it points to the strength of the mall just off Highway 101, which makes it attractive to commuters and is anchored by stores like Ikea, Nordstrom Rack and Home Depot.

“Looking at a macro level, we just have to stay positive. We have to go out there, get those deals, get those stores that want to work with us, and I’m confident we’ll be able to do that,” Lopez said.