When the store accepts theft as a cost of doing business, and does nothing to fight against it... Then it leads to more theft. Eventually theft loss grows to the point where the store is going to go out of business. Or they will have to raise prices so much, paying customers go elsewhere.
A store that gets aggressive and goes after all theft will certainly have more costs initially. As word gets out the criminals will go elsewhere. The business loss due to thefts will go way down, the total cost to prosecute will go down, and profits will soar. They can lower prices and make more profits because sales will soar.
However in a place like California police won't respond to thefts under $1000. Stores have mobs doing smash and grabs because they know there is no consequences. Even if they tripped and fell in front of a cop they won't be arrested.
Huge problem with that policy.
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