‘Unsustainable burden’ of daily theft forces family to close 13-year-old Portage clothing store – Winnipeg Free Press

A family-owned clothing store in Portage la Prairie will close in January after a rise in shoplifting put an “unsustainable burden” on the 13-year-old business.

Olina Fashions owner Arishya Aggarwal said theft has become an everyday occurrence, resulting in financial losses and concerns about the safety of staff and customers.

“Closing this company was not an easy decision. After thirteen years, it became clear that the challenges we faced, especially theft, made it impossible to continue,” she said.

MIKE DEAL / FREE PRESS FILES Arishya Aggarwal said there is “no real deterrent” to theft, which hurts businesses and communities.

MIKE DEAL / FREE PRESS FILES

Arishya Aggarwal said there is “no real deterrent” to theft, which harms businesses and communities.

She said the decision was painful because the store and its regular customers have been a big part of her family’s lives.

Her family, which owns several businesses in Portage, started thinking about closing Olina Fashions in 2019. The last day is Jan. 25.

“Retail theft was the biggest factor – 100 percent,” Aggarwal said. “It’s not just about the financial losses, even though they are enormous. It’s the constant stress of having to watch it every day, the abuse our employees suffer trying to stop it, and the helplessness of watching it get worse and worse.

“Theft affects everything from morale to the ability to focus on growing the business. If you’re constantly dealing with theft, you’re stuck in survival mode instead of growing.”

A thief held a machete to Aggarwal’s stomach during a robbery in August 2023.

Rampant theft, coupled with rising costs, has been a factor in several recent store closures in Manitoba, including four 7-Eleven locations in Winnipeg.

“This is becoming something that is happening more and more now,” said Chuck Davidson, president and CEO of the Manitoba Chambers of Commerce. “Some companies have little alternative while they are already dealing with cost pressure.”

Aggarwal said there is “no real deterrent” to theft, which harms businesses and communities.

“If someone gets caught, nothing meaningful happens,” she said. “That sends the message that stealing is basically risk-free. By the time the RCMP intervenes, it will be too late and we will never get our stolen goods back. Community safety officials also don’t have the authority to make much of a difference.”

Aggarwal believes changes in Canadian legislation could help reduce theft.

“We need laws that enforce accountability and consequences, while providing avenues for rehabilitation and positive change,” she said.

“Operating costs such as property taxes and salaries are already so high, and theft adds an unsustainable burden.

“Without real reforms, more businesses will be forced to close. Independent businesses are the backbone of our communities, and we need real support if we are to keep them alive.”

Olina Fashions is one of the few non-chain clothing stores in Portage, about 70 kilometers west of Winnipeg.

In October, politicians and other participants at a retail summit in Winnipeg emphasized the need to tackle poverty and drug addiction to reduce thefts.

An enforcement campaign against retail theft in Winnipeg’s Exchange District, Osborne Village and West End is being made permanent with government funding from Manitoba. The province has faced calls to expand the program to other communities.

The county offered homeowners, renters and business owners a $300 rebate on security equipment, but the $2 million fund was quickly depleted.

Davidson and the Canadian Federation of Independent Business would welcome the return of the program – with a higher discount – to help offset costs.

“It’s not even about shoplifting. It is vandalism and it comes with a high price tag,” said Tyler Slobogian, a Winnipeg-based senior policy analyst with CFIB.

Insurance deductibles often exceed the cost of stolen goods, meaning few companies are willing to make a claim. About 75 per cent of small businesses in Manitoba say higher insurance rates are a major concern, Slobogian said.

He said small business owners — many of whom are in debt after the COVID-19 pandemic — have spent an average of $5,000 on crime-related expenses over the past three years.

“That could be the solution for a lot of these small businesses that are facing tighter profit margins,” he said.

Slobogian and Davidson said businesses need help from all levels of government. Davidson encouraged Manitobans to support local businesses.

According to an estimate from the Retail Council of Canada, approximately $200 million worth of goods are stolen in Manitoba each year. Retailers say theft is far underreported.

A recent Statistics Canada survey shows that reports of shoplifting in Manitoba are still below pre-pandemic levels.

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