Small businesses feel abandoned by lawmakers amid surge in retail thefts.
Mayhem on Main Street: The Scourge of Shoplifting
Part One: The Impact on Mom and Pop Stores
A nationwide retail theft epidemic has plagued the United States, resulting in nearly $100 billion in losses in 2021 alone. This crisis has forced stores to raise prices or even close down, while insurers refuse to provide assistance. The consequences are particularly devastating for smaller mom and pop stores, which are being left behind. In this investigative series, Mayhem on Main Street, The Washington Examiner will delve into the causes of shoplifting, the involvement of cartels, the impact on both large and small stores, and the role of lenient prosecutors. Part One will focus on the profound effect on mom and pop stores.
“I might as well leave my door open and say, ‘Help yourself,'” said Deborah Koenigsberger, a small business owner in New York’s Flatiron district.
Deborah Koenigsberger has been running two small businesses in New York’s Flatiron district for over three decades. Having experienced the challenges of the crack and heroin epidemic in the late 1980s, she believes that conditions for small business owners are now even scarier.
In recent years, Koenigsberger’s stores have been targeted by armed robbers numerous times. Employees have quit out of fear for their safety, and she has helplessly watched as brazen shoplifters make eye contact, steal from her boutique, and walk away without consequences. Some even return for more.
“I have a business to run, and for me, it’s very personal when you steal from me,” Koenigsberger expressed. ”It just feels like I am being violated again and again and again.”
Across America, small mom-and-pop shops like Koenigsberger’s are ruthlessly targeted by thieves, both organized groups and individuals driven by self-interest. As a result, these business owners are left with two choices: raise prices to compensate for losses or give up altogether.
Filing an insurance claim is often futile, as it typically leads to premium hikes or dropped coverage. The options are limited, and frustration is mounting among small business owners.
“There are very few options, and there’s a huge amount of frustration,” Koenigsberger said. “You are constantly trying to be one foot ahead of the criminal at all times, which means you’re spending money you don’t have, and your profits are already so slim. Eventually, a lot of people who have sense just give up, and then there are those of us who just slug away.”
In June, the U.S. Chamber of Commerce reported a surge in retail theft. A survey revealed that 56% of small business retailers had fallen victim to shoplifting, with 50% stating that the issue had worsened. As a result, 46% of these businesses were forced to increase their prices.
“Retail theft is not a victimless crime, and its increasing prevalence means greater danger for store employees and higher costs for law-abiding Americans,” emphasized Neil Bradley, chief policy officer at the U.S. Chamber of Commerce. ”Store owners are not only confronted with traditional shoplifting but increasingly with highly organized criminal gangs who seek to profit by taking advantage of gaps in the law.”
Stories of shoplifting woes extend beyond New York. Tamara Young, the owner of Consign Couture, an upscale consignment store in Oregon, experienced a staggering 19 incidents of shoplifting since opening a second location in a Portland-area mall. Thieves made off with over $56,000 worth of designer bags, clothing, and shoes.
One incident was caught on camera, showing a woman discreetly stuffing a stolen Louis Vuitton bag into a baby stroller covered by a blanket.
Due to the relentless theft, Young decided not to renew her lease and now operates solely from her original location. She has even stopped accepting designer bags for consignment altogether, fearing the safety of her staff.
Similar stories of theft and frustration echo across the country. Dale Hardware, a family-owned store in Freemont, California, lost over $700,000 in merchandise to theft last year. Owner Kyle Smith describes shoplifting as an “epidemic” that affects small businesses nationwide.
Smith contemplated hiring armed guards to protect his store but ultimately decided against it due to restrictive policies in the Bay Area. Guards are only allowed to serve as visual deterrents and cannot physically intervene or block thieves from taking goods.
Lisa Nicewaner, co-owner of Back in Time Comics and Toys in Missouri, expressed how every stolen item directly impacts their bottom line. Unlike larger businesses that can absorb losses, small stores like theirs bear the full brunt of theft.
Despite the challenges and frustrations, these small business owners refuse to be bullied out of business. They continue to fight against the rising tide of shoplifting, determined to protect their livelihoods.
While some states have passed laws to crack down on shoplifting, many small business owners believe that these measures primarily benefit large retailers, leaving them behind.
“I think they are all such hypocrites,” Koenigsberger criticized lawmakers. “They all talk about how small businesses are the backbone of cities. And how we employ people, and they turn their backs on us. Nobody out there seriously cares about a small business… The bigger you are, the stronger your voice. The smaller you are, the less voice you have.”
Despite the challenges, these resilient small business owners will continue to fight for their businesses, refusing to let criminals dictate their fate.
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