Another nails on the coffins for brick and mortar retailers – no wonder new major retailers are by-passing Pittsburg.
A Bay Area retail crime spree comes at a critical moment – Story photo for A Bay Area retail crime spree comes at a critical moment
Just a week before a critical Black Friday and holiday shopping season starting in earnest, Bay Area retailers were left reeling after a series of organized retail crime robberies hit San Francisco’s Union Square, Hayward, San Jose and Walnut Creek. After signs of recovery following pandemic health orders and more tourists in the region, smashed windows and empty shelves mark another challenge that shops — from global chains to mom and pop stores — must grapple with. Business owners are fearful about employee safety even more than stolen merchandise. There’s now a sense of heightened threat of violence, on top of COVID.
Feeling safe isn’t cheap: I talked to a Hayes Valley consumer electronics shop called B8ta that closed for seven months after being robbed at gunpoint. They’re now paying around $30,000 a month for around-the-clock guards with bulletproof vests, a cost that’s higher than their retail payroll or their rent. Off-duty police officers, who are armed, can be even more expensive, costing upwards of $100 per hour. It’s a big reason why San Francisco is the most expensive California city for retailers, and one of the most expensive in the country.
What can the city and retailers do? Experts say prosecution needs to be stronger, and District Attorney Chesa Boudin filed felony charges against the nine suspects who were arrested in Union Square outside a wrecked Louis Vuitton store. There needs to be more distinction between petty shoplifting, particularly when it’s done for financial survival, and organized retail crime targeting high-end products, retail experts said. For retailers, more robust security systems like pull-down door covers and cameras to help aid police investigations can deter crime, and they’re less expensive than guards.
There’s still hope for businesses. The National Retail Federation said last month that it expects holiday sales to grow by as much as 10.5% compared to 2020, up to $859 billion, which would be the highest on record. But a caveat: That figure includes online sales, and the recent string in robberies suggests local shoppers may prefer clicking rather than traveling to stores.
Do you feel unsafe shopping in person? Let me know at roland.li@sfchronicle.com and on Twitter @rolandlisf. – answer is definitely not safe.
Roland Li headshot Roland Li
Business Reporter
roland.li@sfchronicle.com
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