VIDEO: The surveillance footage from Dale Hardware, a Fremont-based store, has captured several instances of employee confrontations with shoplifters, some of whom have been caught stuffing stolen items into their pants. Owner Kyle Smith states that shoplifting cost the store $700,000 last year, which has had a significant impact on the family business established by his grandfather in 1955. Various factors are contributing to the rise in shoplifting, including organized retail theft, social media facilitating mob-ransacking, increased homelessness, widespread drug addiction, and a shift away from incarceration for less-serious crimes. According to a survey by loss-control consultancy Hayes International, the average shoplifting take rose to $802 last year, a 26% increase compared to 2021. The National Retail Federation estimates that “retail shrink” caused by shoplifting and theft by organized criminal groups reached $95 billion in 2021. While official statistics do not accurately reflect the scale of shoplifting due to underreporting, reported incidents in Alameda, San Mateo, and San Francisco counties reached their highest numbers since 2013. The same trend, after a decline in 2020 during the COVID pandemic shutdowns, was observed in Santa Clara and Contra Costa counties. Several business owners express their frustration with the lack of police response and growing incidents of shoplifting. Sam Kalil, owner of Jeans Palace and San Jose Blue Jeans, shares that he loses $1,000 to $3,000 a month at each of his stores. He mentions a recent incident when he confronted a shoplifter, only to have the thief brandish a gun. At Dale Hardware, shoplifters resort to various methods, such as hiding stolen items in their pants or taking the store’s own tools. One incident involved a pair of thieves who exited the store with $11,000 worth of specialty wire, while another involved a well-dressed woman who stole all the batteries from the store’s 12-foot wall in less than four minutes. Smaller retailers, not just national chains, are also being targeted, exacerbating the problem for businesses like Dale Hardware. The loss of merchandise through theft has become an existential threat to many retailers, leading to increased prices for consumers. At Joseph George, a high-end wine shop in San Jose, the owner, Bert George, highlights the costs associated with deterring thieves. He recalls an incident with a knife-wielding individual who left after being questioned. The losses experienced by Dale Hardware are attributed to thieves who steal items they need without wanting to pay, professional and habitual thieves who steal tools, homeless individuals taking flashlights and charging cables, and organized criminal groups tasked with stealing specific items. The California Highway Patrol’s Organized Retail Crime Task Force reveals that stolen-goods vendors often demand specific items, such as designer clothes, sunglasses, electronics, beauty products, and food items. The rise in shoplifting poses significant challenges to businesses, which struggle to sustain losses averaging $1,800 per day.
Bay Area spike sees shoplifters causing $700K loss to Fremont hardware store
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