Hardware retailing and the reality of crime
Rick Karp and family own Cole Hardware, with four stores in San Francisco and one in Oakland.
They recently closed one other store due to what they called declining sales and economies.
“We have five stores now. They are all in urban locations with no parking except meters on the street,” said Karp.
“Our family has owned the business since 1961. David Karp is the president and the third generation of ownership. His sister, Adrianna, is also in the business but is out on extended leave. Her boss would love her back, but her dad is happy she’s staying home with the kids now,” he said.
The topic of rising retail crime in big cities is in the news often today, and San Francisco seems to be one of the urban areas of focus.
“The dirty little secret of retail is shoplifting. It occurs daily by all walks of life and all economic demographics,” said Karp.
“From our perspective, everyone steals,” he said. “It’s sad and unfortunate but true. Mothers with strollers, senior citizens, kids of all ages, and everyone in between. I’ve even caught the grandfather of one of our employees sticking something in his pocket.”
He said that an increase in shoplifting has been a sad side effect of the pandemic, as it has forced many people into difficult economic situations.
Also related to shoplifting is a growing threat from organized retail theft.
At the website Buy Safe America, a coalition of retailers, consumer groups, manufacturers, intellectual property advocates and law enforcement officials, it refers to “professional shoplifters” and said, “these criminal rings are growing more brazen and violent, putting the safety of customers and store employees in jeopardy.”
According to the U.S. Chamber of Commerce Retail Crime Data Center (RCDC), organized retail crime, also referred to as organized retail theft, is the coordinated theft of merchandise by individuals and groups for the purpose of reselling those goods by passing them off as legitimate goods to unsuspecting buyers, typically online.
Many of these thefts become violent, and innocent consumers, employees, local communities, and business owners and shareholders bear the costs of rising retail theft, said the RCDC.
On its website it wrote, “According to the National Retail Federation’s 2022 Retail Security Survey, 8 out of 10 retailers reported increased incidents of violence and aggression this past year.”
Big box sees more of this but independents should be aware and have a plan in place.
Crime deterrents
Karp talked about what he instructs his hardware store team members to do in a retail crime situation.
“California law is on the side of the shoplifter. We can’t accuse anyone of stealing until they have stepped out of the store, and then it’s too late,” the owner said.
“When we see a potential thief, our staff stays with them, watches them closely, and sometimes asks them to leave the store. However, it is a delicate issue, as sometimes profiling and offending a paying customer arise,” he said.
Overall, the team tries to address shoplifting through superior customer service, he said, making sure that all customers are greeted repeatedly and recognized.
“We also ask our staff not to chase down shoplifters or accuse anyone,” said Karp. “Their safety and security are way more valuable than whatever is being stolen.”
Hardware staff training, along with preventative measures, can help stem the tide.
Train staff on how to address shoplifting in your state is important, he said, and thinks other states might be, “more retailer-friendly than California.”
It’s probably impossible to stop theft, but to discourage theft, Karp said they utilize hundreds of magnetic locks on peg hooks and glass security cases for high-value and high-demand categories – think power tool accessories and Yeti water bottles as examples.
“At a couple of our stores,” he said, “we also put locked gates at both ends of our tool aisles so that customers can only enter with a salesperson. Really unfortunate – but necessary.”
