[Fox Business] CA store owners sound off on retail theft hurting business

As small businesses find unique ways to fend off suspected thefts or criminals, two California business owners explained exactly how a crime surge has hurt their livelihoods.

“If you do not ask or confront a shoplifter, he’s just going to keep coming back and doing it more brazenly. And you’ve seen that on videos already, and it is happening all over,” convenience store owner Rima Madan said on “The Big Money Show” Tuesday.

“We have complained. It’s really just kind of become like a community effort. We’re not the only ones that are being affected. You can definitely see less traffic, less visitors coming into Oakland, period,” restaurant owner Silvia Hernandez-McCollow also added Tuesday on “Cavuto: Coast to Coast.

Due to a rise in retail theft and crime, which Madan and Hernandez-McCollow blame on Democrat-led policies, some businesses have been installing electric fences or fog alarms to stop crimes in their tracks.

CALIFORNIA SMALL BUSINESS OWNER CRITICIZES NEW CRIME BILL: ‘OUR DREAMS ARE BEING SHATTERED’

“The break-ins really have escalated to such a degree that we’re constantly getting feedback from guests that have been loyal fans of ours for years, saying, enough is enough. We love your space, we love your staff, we love the service, the food, but we just can’t stomach another broken window,” Hernandez-McCollow explained.

“What starts off as a lovely dinner with family and friends, ends up being an eight, $900 to $1,000 when it’s all said and done, having to fix the windows, all their lost personal items,” the restaurateur continued.

Madan’s convenience stores are part of the many nationwide that lost an estimated total of $86.6 billion in 2022, according to Capital One shopping research.

“We cannot ask our employees to stand their ground because that’s a violation of the policy. So that is why you see so much happening in California,” Madan said.

She referenced Senate Bill 553: “It would become illegal for business owners and employees to confront looters, shoplifters and street criminals. And in anticipation, you already see people walking out with stuff just like on the videos that you’re noticing. And the employees are unable to stop them because then we are held liable for stopping them.”

“This law is going to be very, very bad for small business owners,” Madan continued.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

For Hernandez-McCollow’s two restaurants, sales have reportedly dropped an estimated 30% due to the crime issues.

“It’s not just affecting people that live in Oakland. It is affecting folks that visit from some of the neighboring cities,” Hernandez-McCollow said. “It’s something that’s also happening in San Francisco, but I’m specifically speaking about how it affects us here in Oakland because this is our city.”

READ MORE FROM FOX BUSINESS

Read More 

[Fox Business] JCPenney CEO says company focused on American working families as economy weighs on consumers’ wallets

JCPenney, the 121-year-old department store, is trying to revive its business by focusing on working families – who it sees as its core customers – as the current economy weighs on Americans’ wallets and the retail industry.

As part of its transformation after filing for bankruptcy in May 2020, CEO Marc Rosen – who took the helm in 2021 – said that the company has been revamping its product offering, making sure it’s a cheaper alternative to other department stores, to boost customer frequency. 

With the right product portfolio, Rosen said that JCPenney shoppers won’t have to trade off between fashion and value. He added that they won’t have cut back as much on discretionary spending, a trend that has accelerated over the past few years as inflation weighs on households.

RETAIL THEFT IS A ‘PERSISTENT THREAT’ THAT’S ONLY GETTING WORSE: NRF CEO MATT SHAY

“I think the unique thing about JCPenney is that we can give that shopping experience where the customer doesn’t have to make those trade-offs,” Rosen said in an interview with FOX Business. 

The former Walmart and Levi Strauss executive said that JCPenney’s revamped product portfolio, which includes 25 relaunched private label brands, has proven successful for its customer base, which he describes as the “working American families.”

“It’s the core of America. It is the teachers who are teaching our kids in school, it is the construction workers who are building our homes and building the places we go to work and the medical workers who are taking care of us and of our families,” he said.

Over the last couple of years, those families have seen out-of-pocket expenses rise by $700 on a monthly basis, Rosen said.

In the past three years, the company has seen more than 50 million customers come through its doors, but the goal has been to get those people shopping more frequently and to visit more areas of the store, according to Rosen.

KROGER WARNS OF WEAKER SALES, FURTHER STRESS FOR CONSUMERS

Since last fall, following what has been a multi-year decline in customer frequency, Rosen said the company has seen a 5% increase in the frequency of customer visits. In some of its important customer segments, it saw a more than 20% increase.

“That gives us the confidence that we can get the product right when we focus on the customer, and we get the shopping experience right, this is going to work,” he said. 

To build on this momentum, the company recently announced that it will be investing more than $1 billion into the business over the next three years. Rosen said the investment, to revamp its current store portfolio, is self-funded.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Rosen plans to remodel the existing store fleet – about 670 locations – with new paint, lighting and improving the fitting room experience. The funds will also be invested to enhance in-store technology and improve its website in part by updating product imagery and the search function. 

“We’re in a really fortunate place right now where we have a very clean balance sheet,” he said. “We have less than half a billion dollars of debt, which gives us a lot of financial flexibility, and we’re generating a lot of cash flow from the operations, which lets us reinvest that.” 

Read More