Opinion: To Stop Flash Mob Robberies, Stores Could Adopt Membership Model

If our elected representatives are unwilling to repeal Proposition 47, a failed experiment in criminal justice reform, then California businesses should consider turning their stores into membership-based establishments. This approach offers an effective means to deter shoplifting by mandating that shoppers provide identification before entering, enabling stores to better address theft without relying solely on law enforcement. 

A retailer can install surveillance equipment and place detection gates at the exits to help reduce shoplifting. Stores can also hire security to detain shoplifters who are caught stealing. But if weak laws such as Prop. 47 are not repealed, law enforcement will only be able to cite and release shoplifters who will simply return to steal again.

In San Diego, a gang of thieves brazenly targeted the Nordstrom store at UTC during regular business hours in October 2022. They managed to make off with approximately $140,000 worth of merchandise and escaped in a matter of minutes.

Prop. 47 emboldens criminals who routinely steal from stores. If a shoplifter is arrested and the amount they took is under $950, they are simply issued a notice to appear in court. They are free roam the streets with impunity to steal again, oftentimes the very same day.

Costco has a membership-only business model, which means consumers pay a fee to access lower-cost products. Costco’s model is working as their inventory losses due to theft have remained largely unchanged while retail giant Target said its losses from theft will balloon to more than $1 billion in 2023, up $500 million over last year.  

Charging a membership to shop may not seem fair to people on fixed incomes or who simply do not have the means to pay for it. The solution is to provide these individuals with a free membership. However, they would need to abide by the membership rules that include showing their card upon entering the store and providing security with their receipt before leaving the store.

Shoppers who do not follow the store membership policy or break the rules will simply have their memberships revoked and will need to seek out non-membership stores to shop at.

Major retailers in the US have been forced to close locations due to millions of dollars in losses, as rampant theft plagues stores across the country. Target recently announced that it will close nine stores in urban areas across four states, citing increased violence related to theft and organized retail crime. Walmart announced the closing of 23 stores nationwide. 

Rite Aid blames out-of-control shoplifting for closing stores in New York City, and Walgreens received national attention in 2021 when it announced that it was closing five stores in San Francisco, citing shoplifting as the reason .

When stores shut down because of theft, local residents endure the dual hardship of both the crime and the closures. This situation is particularly challenging for individuals, especially seniors, who rely on a nearby pharmacy for medications. Consequently, they are compelled to travel beyond their neighborhoods to have their prescriptions filled.

This is precisely why the membership-only business model is a practical solution. Those who invest in a membership will ultimately save money as they will not be paying for price hikes associated with shoplifting. 

Retail crime accounted for over $112 billion dollars in losses last year and store owners typically pass on the costs of shoplifting to consumers in the form of higher prices. Law-abiding customers should not have to pay for the illegal acts of criminal shoplifters.

It is imperative for our political leaders to strengthen property crime laws by either introducing new legislation, amending existing laws, or repealing laws such as Prop. 47. Until they do, however, California businesses can proactively address the issue by converting their stores into membership-based establishments. This may also prompt our political leaders to take the necessary actions needed to combat this problem effectively.

Mark Powell is a former San Diego Police reserve officer and holds a degree in criminal justice administration. Powell also served as a San Diego County Board of Education Board Member.