Aus retail giants warn of store closures amid violent crime surge
Victoria’s retail sector is teetering on the edge of collapse, with violent crime forcing major chains to consider shutting their doors – sparking fears of a wave of vacant properties across the state.
Fred Harrison, chief executive of Ritchies IGA, has warned that unprecedented levels of retail crime – fuelled by armed thieves – are pushing some businesses to the brink of closure.
With 85 stores nationwide, including 52 in Victoria, Ritchies IGA is grappling with what Mr Harrison describes as a “crisis point” for retail crime in the state.
“People are making decisions to exit the business because there’s that much theft that it is impacting their bottom line,” Mr Harrison told the ABC’s 7.30.
“You can’t expect retailers to remain trading and lose money. Is it all-round more profitable, safer, if we just close and walk away?”
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The prospect of store closures raises serious concerns about the ripple effects on commercial property markets as well as job losses for hundreds of employees.
Empty shopfronts could become a common sight in shopping precincts already struggling to recover from the economic fallout of the Covid pandemic.
Ritchies IGA stores in Victoria may be closing down due to the amount of violence staff have experienced in recent years
Victoria accounts for 95 per cent of the issues facing Ritchies IGA, with brazen thieves now targeting stores in broad daylight.
The problem is not confined to supermarkets.
Hardware giant Bunnings has also reported a surge in violent incidents, with store manager Olivia recounting regular visits from local gangs armed with weapons.
High-value items such as lawnmowers, barbecues, and hot water systems are being stolen with impunity.
“We had a point where we had local gangs coming into the store,’ she told the ABC.
“They would come on a very regular basis as well with weapons and just walk straight out of our store with lawnmowers, barbecues, hot water services.”
Bunnings has responded by introducing body-worn cameras for staff and security guards, but the violence persists.
Shocking CCTV footage released last year showed staff being threatened with knives and even a shotgun. In one instance, a knife was held to an employee’s throat.
The crisis is not just a retail issue – it’s a property issue.
A man wearing abuses Bunnings staff as he walks out with a stolen item
Vacant stores can have a cascading effect on local communities, reducing foot traffic, depressing nearby property values, and creating a sense of economic decline.
For landlords, the prospect of losing tenants amid rising retail crime is a growing concern, particularly in Victoria, which has become the epicentre of the problem.
Recent data from the Australian Bureau of Statistics revealed that retail crime in Victoria reached a 21-year high in 2023, with 169,673 victims of personal and retail theft recorded in 2024 – a staggering 29 per cent increase from the previous year.
The situation has prompted Woolworths to take drastic measures, including the creation of a dedicated role titled Head of Acts of Violence and Aggression.
A thief pulls out a knife at a Woolworths store and walks out with their shopping. Source: ABC
Staff at the supermarket giant are being equipped with body-worn cameras and virtual reality training to handle aggressive customers.
While these measures may offer some relief, the broader question remains: how long can retailers endure the financial and emotional toll of operating in such a hostile environment? And what will happen to the commercial property landscape if they decide they can’t?
For now, the spectre of vacant shopfronts looms large over Victoria’s retail hubs, threatening to reshape the state’s property market in ways that could take years to recover from.
