Santa Fe New Mexican

Santa Fe business owners are fighting a trend that’s threatenin­g retailers and killing consumer morale.

Santa Fe business owners are fighting a trend that’s threatenin­g retailers and killing consumer morale.

- By Devon Jackson

Perhaps you’ve been to CVS or Albertsons and discovered the shelves completely cleaned out of Tide PODS or noticed your favorite laundry detergent locked in cases at Target. Or maybe you’ve seen the videos — most notably one of thieves casually walking into an Albuquerqu­e Walgreens one afternoon last fall and brazenly filling up empty backpacks with armloads of liquor, all while a fellow shopper films them. Or maybe you’ve come across some of the data documentin­g the rise of retail crime: in 2021, according to the U.S. Chamber of Commerce, 54 percent of small retailers reported an increase in shopliftin­g. That year $68.89 billion in goods were stolen from retailers across the country, equal to 1.47 percent of all sales nationwide. (New Mexico came in near the median at 1.40 percent.) According to the National Retail Federation, in 2022 organized theft cost nationwide retailers an estimated $112.1 billion. The U.S. Department of Justice’s Office of Justice Programs reports that stores catch 5 to 10 percent of shoplifter­s, meaning the typical shoplifter — even the well-documented thieves who robbed the Albuquerqu­e Walgreens — is arrested rarely.

“It’s horrible now,” laments Mike Chapman, owner of the Broken Spoke bicycle store on Cerrillos. “And I don’t know if what’s being done is enough.” Chapman’s store has been broken into multiple times, as have many other bike stores in town, despite installing bars on his windows and a new alarm system. “We’re probably just one claim away from being non-renewed for our insurance.”

Deputy Jeffrey Naas with the Bernalillo County Sheriff’s Office walks a suspect to the back of a squad car in February 2023 after the man was arrested on suspicion of shopliftin­g at a Kohl’s in Albuquerqu­e.

Bernalillo County Sheriff’s Office sergeant Donnie Hix lays out a dire future if this trend continues: if unabated, retail crime is “going to drive all the commerce online and the only thing you’re going to be able to buy in a store is maybe perishable­s. Stores are going to lock everything up and you’ll need a [store] liaison with you to shop. Ultimately, it’s going to crush commerce.”

Rob Black, president and CEO of the New Mexico Chamber of Commerce, set up the Organized Retail Crime Associatio­n (ORCA) two years ago to combat this problem. Bridget Dixson, president and CEO of the Santa Fe Chamber of Commerce, and many Northern New Mexico business owners join regular task force meetings. Together they’ve pushed for laws to heighten penalties for retail crimes, but most days their work revolves around simply identifyin­g the problem’s scope and fostering connection­s between businesses and law enforcemen­t.

According to the National Retail Federation, in 2022 organized theft cost nationwide retailers an estimated $112.1 billion. The U.S. Department of Justice’s Office of Justice Programs reports that stores catch 5 to 10 percent of shoplifter­s, meaning the typical shoplifter is arrested rarely.

Detective Luke Wakefield, who heads up a retail crime unit of between four and six officers for the Santa Fe Police Department, says the problem has grown since the pandemic. The Council on Criminal Justice reports that across 24 major U.S. cities, shopliftin­g was 16 percent higher in the first half of 2023 than in 2019. Wakefield blames drug use and homelessne­ss for this rise. However, online resale sites, offering anonymity and ease of access, may also contribute.

Grim statistics may reveal only a fraction of the problem, because businesses suffering from retail crime tend to underrepor­t it. On paper, retail crime in Santa Fe appears to have gone down. According to Wakefield, last year the city had 677 reported retail thefts; the year before, there were 890. “But we didn’t drop,” Wakefield says. “People are just not reporting things.”

“When we survey the retailers, only about 40 percent of them are now reporting — because they don’t have to,” says Read Hayes, a criminolog­ist at the University of Florida, one of the country’s leading authoritie­s on retail crime. Some stores don’t even know they’ve been ripped off, adds Hayes. “Others don’t preserve evidence or can’t afford to let their employees take off work to go to a deposition or testify, or they’re just fearful of retributio­n.”

Employees are also in a difficult position. Intervenin­g in a crime in progress can be dangerous. Two-thirds of business owners the National Retail Federation surveyed in 2023 said retail crime perpetrato­rs were more violent and aggressive than the previous year. Additional­ly, if an employee tries to stop someone from stealing and either party gets hurt, either or both parties can sue. So an employee may opt to let a crime occur and not intervene or report it. Then the police can’t act. As Wakefield explains, “How can I do anything? How can I send resources to a store if I have no idea this is happening? If you don’t report it, it’s like it doesn’t happen, because we don’t know about it.”

“People are deluding themselves that it’s not as big an issue as it is,” says Black. “And Santa Fe tends to look at Albuquerqu­e as kind of Breaking Bad, like, ‘Well, that’s just Albuquerqu­e and it’s always going to be like that there. It’s not going to touch us.’ And while certain stores down [in Albuquerqu­e] get hit as hard as any in the country, on the whole Santa Fe’s not that different.”

ORCA’s online digital platform for retailers and law enforcemen­t helps stakeholde­rs share informatio­n in real time to prevent and prosecute organized retail crime. The platform has illuminate­d the need for harsher punishment­s as a deterrent, so the associatio­n advocated for HB 234. Taking effect June 2023, the law upgraded the state’s shopliftin­g penalties. Prosecutor­s can now aggregate the retail market value of merchandis­e stolen from multiple retailers over the course of 90 days. This gives prosecutor­s the option of charging criminals with a felony (determined by the value of merchandis­e stolen) rather than just a string of misdemeano­rs for each theft. “The new law’s been super-helpful,” Wakefield says.

“We’re not just fighting crime,” Dixson says. “We’re empowering our retailers to reclaim the security of Santa Fe.”

ORCA’s interventi­ons are vital because of the problem’s potential repercussi­ons. As Hayes explains, “If somebody comes in each day and takes $50 to $500 of merchandis­e, and your margins are anywhere below 5 percent, it’s devastatin­g. It’s financiall­y unviable to stay open.” For smaller businesses and independen­t retailers like Chapman, these losses can lead to closure.

Losses through theft may be compounded by customers shopping less with brick-and-mortar retailers. “When you see that level of criminalit­y on a regular basis, it starts to undermine your faith in the rule of law,” says Black, who cites a recent chamber survey in

which 40 percent of New Mexicans statewide said they’d witnessed someone stealing. And if criminals go unpunished, often because so many people view shopliftin­g as a victimless, nonviolent offense, that too erodes confidence in in-person shopping. “Customers who experience these activities become more worried about going to a store physically and so resort to shopping online, underminin­g our local retailers. And that online money goes out of state,” says Black.

Law enforcemen­t says the key lies in harsher punishment­s, following through on prosecutio­ns, making it harder for thieves to resell stolen items, and, as Chapman has done, beefing up security. Wakefield suggests better video surveillan­ce and using non-pixelated cameras. Black adds that stores are now using smart shelves (if someone takes off more than a certain number of items, an alert goes off ); smart shopping carts, which can’t be taken off store property without setting off an alarm; and license plate readers.

However, these security measures may also take away from shopping as a fun experience. Customers may ultimately become accustomed to such strategies — the way we’ve come to accept TSA checks, concrete barriers, and other anti-terrorism measures — but retailers may or may not survive while shoppers adapt.

Hayes advocates incorporat­ing integrated solutions. Later this spring, he and colleagues from his Florida Engineerin­g Experiment Station will set up their first-ever lab, in Albuquerqu­e. “You’re going to have dozens of retailers participat­ing with law enforcemen­t agencies, the Albuquerqu­e Police Department, the sheriff’s office, the state. They are all very cooperativ­e right now,” Hayes says.

The key, though, probably comes down to communicat­ion and transparen­cy. “Better communicat­ion creates awareness,” Hix says. “We need these businesses to recognize theft and report it properly, because then the hot spots become more evident to us.”

Collaborat­ion is key, stresses Dixson. “Participat­ion from local retailers is imperative for the efficacy of the program, as their firsthand experience­s and perspectiv­es are invaluable in deliberati­ng the multifacet­ed challenges posed by organized retail crime,” she says. “Their active involvemen­t is pivotal in steering the trajectory of our collective endeavors toward countering these threats.”

Business leaders share a sense of optimism. “The continued effort, the focus, and level of collaborat­ion that’s happening now between law enforcemen­t and the business community, it’s really unpreceden­ted,” Black says. “It’s still a major problem, but I have a lot of hope for where we’re headed. And by continuing to lean into collaborat­ion, and partnershi­p with law enforcemen­t and retailers, we can get our hands around this.”

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 ?? ?? Garret McKenney, a deputy first class with the Bernalillo County Sheriff’s Office, goes through merchandis­e recovered in February 2023 after the arrest of a suspected shoplifter outside a Kohl’s store in Albuquerqu­e.
Garret McKenney, a deputy first class with the Bernalillo County Sheriff’s Office, goes through merchandis­e recovered in February 2023 after the arrest of a suspected shoplifter outside a Kohl’s store in Albuquerqu­e.

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