Small-biz owners in the U.S. are taking action against the increase in thefts and shoplifting.

• Small businesses, already struggling to recover from the pandemic, are further impacted by shoplifting and theft, which also negatively affect big retailers and chain stores.
• According to a spokesperson from the National Retail Federation, it is unlikely that law enforcement will pursue someone who steals below the state's federal theft threshold.
• Some small-business owners claim they're losing thousands of dollars monthly and won't submit every insurance claim out of fear of being dropped.
• To combat the rise in crime, they are imposing a 1% fee on all transactions, enhancing security measures, and, if necessary, shutting down entirely.

They appear to be fearless, confrontational, and indifferent to the consequences of their actions.

Small-business owners in New York City and San Francisco are struggling to recover from the loss of customers due to shoplifting, which has reportedly forced some locations to close. Unlike large retailers, these small businesses cannot absorb the financial impact of the crime wave.

Derek Friedman, a small-business owner, stated that when several thousand dollars walk out the door, it's a tough situation with no easy words to describe it.

Since mid-2019, four out of Friedman's 10 Denver-area stores have experienced a significant increase in theft, resulting in losses of over $200,000 in less than three years.

Before the spike in 2019, our average monthly losses to theft were between $2,000 and $3,000. Since then, the retail value of stolen items has averaged around $8,000 per month.

"For almost two years, I had to live off of retirement without any income pay increases as we struggled to recover from the losses caused by the Covid pandemic," Friedman stated.

Small-business owners are facing an increase in shoplifting, with 54% reporting a rise in incidents last year and one in four saying they deal with it weekly, according to a recent survey by Business.org.

A shoplifter in a surveillance video picked up a jersey and hat, threatened employees with a 2-foot-long machete, and walked out of the store with stolen merchandise. Friedman reported the incident to police but no one was apprehended, according to him.

Because of the high number of incidents his businesses were experiencing, Friedman stated that he was close to losing his insurance coverage.

"We didn't purchase insurance because we would have been dropped, and a small business can't operate without it," he stated.

To offset his losses at four of his hardest-hit Denver stores, Friedman introduced a 1% crime-spike fee that will be added to all transactions indefinitely. This may be just the beginning.

I hope we don't have to deal with this level of shoplifting," he said. "When I bought retail stores, I understood that it was a part of doing business, but not to this extent. We didn't sign up for this, and it's not right. It needs to change.

In New York City, Cellar 53 Wine & Spirits owner Peter Panayiotou is always the first to arrive and the last to leave. He is so worried about theft that he can't recall the last time he took a day off.

"I arrive before my colleagues and remain in the store until closing at 10 p.m. This is because I do not want to leave them alone," Panayiotou stated.

The shop owner shared a surveillance video with CNBC last month, in which a man stole a bottle of liquor and fled. Despite Panayiotou's pursuit, the man escaped. Currently, this scene is happening more frequently.

For 12 years, he has been present. He never experienced anything like this before, he stated, remembering a man who would daily steal two bottles of Jack Daniels from the shelf.

Panayiotou is securing his valuable wine bottles to shelves with zip ties he purchased online. In addition to his security duties, he is also acting as a guard. If he detects a thief, he promptly locks the door.

I tell them to put it back, but it's not worth it. If they do and leave, it's okay. If they don't, I lock the door until I get back what they took from me." Panayiotou stated. "I can't rely on the police anymore. I have to protect my business.

According to Jason Straczewski, the National Retail Federation's vice president of government and political affairs, if someone steals below the federal theft threshold in a store, law enforcement is unlikely to pursue them unless it's a frequent occurrence or part of a group being tracked by law enforcement.

Some states are considering grouping various crimes together so that when someone exceeds the felony theft limit, it will be simpler to prosecute them or a group of them, according to Straczewski.

For three decades, Sneaker City, owned by Caroline Cho in Seattle, has been a family business. However, due to break-ins and brazen thieves, customers were forced to try on merchandise in a new way.

The solution she proposed was to allow customers to try on only one shoe at a time.

Cho stated that it was the only way to safeguard his inventory. "Many individuals believe they can exit with a pair of shoes without payment and avoid prosecution," he added.

When her landlord increased her rent, she decided to sell her stock and close her business, according to Cho.

Saying goodbye to something that has been a part of your life since childhood, which your family has worked hard to nurture and sustain, is bittersweet, as Cho explained. However, there is also a sense of relief because it has become overwhelming.

If you are a small-business owner affected by an increase in shoplifting, we would like to hear from you. Please email us at [email protected].