McBears – the latest victim
El Cerrito has recently witnessed several prominent business closures, raising alarm about the city’s economic climate. Barnes & Noble, a fixture at El Cerrito Plaza for over 20 years, shut its doors in January 2025, leaving 22 employees without jobs.
Company officials said they “didn’t have the opportunity to renew our lease” at that location, suggesting that factors beyond just sales were at play – hmmmmm. On the other hand, Joann Fabrics, another major retailer, also announced it will close its El Cerrito store as part of a Chapter 11 bankruptcy restructuring that is shuttering over 500 locations nationwide. These departures follow a broader trend of brick-and-mortar struggles, but local issues are intensifying the challenge in El Cerrito.
Other big-name retailers in the city are feeling the pressure as well. CVS pharmacy has closed one store and grapples with repeated theft and safety incidents – in one case, two suspects assaulted an employee during a confrontation. Even Target, which operated in El Cerrito, is part of the conversation: moving to Richmond, citing rampant shoplifting and employee safety concerns. Each closure or cutback not only leaves empty storefronts but also fuels residents’ concerns that high operating costs and rising crime are driving businesses away.
Crime and Public Safety Trends: Crime rates in El Cerrito are a serious concern for both residents and businesses. By the numbers, this city of about 25,000 experiences a disproportionately high level of crime. In 2023, El Cerrito’s overall crime index was 342 (on City-Data’s scale) – about 1.4 times the U.S. average and higher than 92% of U.S. cities. This translates to roughly 45 reported crimes per 1,000 residents, which is “one of the highest crime rates in America compared to communities of all sizes”. Most of these incidents are property crimes (like theft and burglary) rather than violent crimes, but the rate of offenses is high by any measure.
The strip mall housing the Bank of Montreal (formerly Bank of the West), Safeway and other companies are retaining, private security to safeguard employees and patrons.
How does El Cerrito compare to its neighbors? It sits in an area with varied crime levels. Quiet nearby smaller communities such as Kensington and Hercules have crime indexes around 142 and 92, respectively, indicating far lower crime rates.. Albany and Pinole also fare better (around the low 200s). El Cerrito falls in between: not as dangerous as the worst hotspots, but notably less safe than many small Bay Area cities. In fact, El Cerrito’s crime rate is roughly on par with its immediate neighbor San Pablo, a city known to grapple with similar socio-economic challenges. This comparison suggests that El Cerrito’s public safety issue is real, even if it’s not alone in facing these problems.
Types of crime affecting businesses: The biggest headaches for retailers in El Cerrito stem from property crimes – shoplifting, organized retail theft, burglary, and the occasional robbery. Police data and incident reports paint a troubling picture for store owners. For instance, in one three-week span in January 2024, multiple incidents hit El Cerrito Plaza: a would-be shoplifter at Barnes & Noble pulled a knife on an employee who tried to stop him; two days earlier, suspects at the CVS had physically attacked a staff member after an argument. That same month, a Walgreens employee was shoved and threatened by a thief stuffing items into his jacket. , and security guards at Safeway were elbowed and pepper-sprayed in a struggle with a repeat shoplifter. In another case, grocery shoppers loading their car in the Safeway parking lot became victims of an armed robbery at gunpoint. These examples illustrate how what begins as property crime can escalate into violence, endangering workers and customers alike.
Such frequent theft and occasional violence have direct economic consequences. Stores face mounting losses from stolen merchandise and must invest in additional security (or risk employees getting hurt if they intervene). The threat of organized retail crime looms large – in late 2024, El Cerrito police partnered with local stores in a special operation and managed to thwart five thefts in one day, arresting nine suspects involved in coordinated shoplifting sprees. While this successful sting was a win for law enforcement, it underscores that organized groups are targeting retailers in the area. When crime rates rise to this level, businesses may respond by reducing hours, hardening their stores (e.g. locking up products), or ultimately closing locations that become unprofitable or unsafe. Indeed, the wave of Bay Area store closures by chains like Target and Walgreens has often been attributed to “retail theft causing losses and threatening the safety of employees and shoppers”. El Cerrito’s own crime trend feeds into that larger narrative, making it a key factor in the city’s business retention struggle.
Economic Challenges: Taxes and Business Climate
Beyond crime, El Cerrito’s economic policies and tax environment are also driving forces behind recent closures and the difficulty in attracting new businesses. The city’s cost of doing business is notably high when compared to neighboring areas, largely due to local tax rates and fees that add financial burden on retailers.
High sales tax: El Cerrito imposes one of the highest sales tax rates in the region at 10.25%. While this rate brings revenue for city services, it creates a price disadvantage for businesses. Shoppers are savvy; many are willing to drive to nearby cities like Albany or Berkeley for big purchases to save a percent or two on sales tax. Many El Cerrito resident have packages delivered in other cities to avoid the additional sales tax El Cerrito imposes. As one local analysis put it, El Cerrito’s steep tax “creates a barrier for businesses and consumers,” effectively incentivizing people to shop elsewhere for expensive items. For small businesses with thin profit margins, losing customers to slightly cheaper jurisdictions is a serious concern. It puts El Cerrito retailers at a distinct competitive disadvantage and can depress sales over time
Other taxes and costs: In addition to sales tax, El Cerrito has higher property-related taxes than many nearby cities. The city’s real estate transfer tax (applied when property is bought/sold) is higher than in surrounding communities, which “discourages…small business owners from relocating to El Cerrito” by making it costly up-front to purchase a site
Likewise, ongoing property taxes in El Cerrito tend to be higher than in similar Contra Costa County cities. Neighboring municipalities such as Hercules, Lafayette, or Orinda not only enjoy lower tax rates but also often have reputations for safer neighborhoods and more business-friendly policies. When entrepreneurs weigh where to open a new store or restaurant, these comparisons can make El Cerrito less appealing. In short, a retailer looking at the East Bay might see El Cerrito as a place with higher taxes, equal or higher crime, and no obvious cost advantages – a tough sell when nearby options have lower operating costs and lower risk.
It’s important to note that not every recent closure can be blamed solely on local taxes or crime. Broader trends like e-commerce competition (hurting bookstores and hobby shops) and corporate decisions play a role. Barnes & Noble’s national strategy and Joann’s bankruptcy restructuring are part of industry-wide challenges.
However, local economic factors significantly compound these problems. High taxes and security costs chip away at profit margins, and a reputation for theft can deter both shoppers and prospective store tenants. The combination of these factors has created headwinds for El Cerrito’s retail sector. As the city loses longstanding businesses, it not only misses out on tax revenue but also risks a self-perpetuating cycle: empty storefronts can lead to less foot traffic and a weaker sense of community, which in turn make the city less attractive to the next wave of businesses. Breaking this cycle will require addressing both the public safety issues and the economic policy hurdles that exist today.
Strategies and Recommendations
Reversing these trends and revitalizing El Cerrito’s business environment will take a multi-pronged approach. Both immediate security improvements and longer-term economic policy changes are needed to restore confidence and draw businesses back. Below are several actionable strategies:
- Bolster Security and Policing: Increase the visible safety presence in commercial areas to protect businesses. This could include more frequent police patrols at El Cerrito Plaza and other shopping hubs, and working closely with store owners on anti-theft measures. (Notably, when Oakland faced a surge in retail crime, the city responded with “more walking police patrols in merchant corridors” and other measures to support beleaguered shop owners.
El Cerrito can take a page from this playbook by dedicating officers or community safety ambassadors to high-traffic retail zones. Additionally, expanding initiatives like the December 2024 retail theft operation – where police partnered with stores and swiftly arrested multiple suspects– will send a strong signal to would-be thieves. Businesses should be encouraged to invest in better lighting, surveillance cameras, and alarm systems, potentially with city grants or rebates to offset costs. The goal is to make it clear that El Cerrito is not a soft target: coordinated theft rings and opportunistic shoplifters should know there’s a high risk of being caught.
- Enforce and Leverage New Laws: Take advantage of recent state-level efforts to crack down on retail theft and hold criminals accountable. In 2024, California enacted a “landmark legislative package” of laws to combat organized retail crime. These new laws create stricter penalties for serial theft, allow prosecutors to aggregate multiple shoplifting incidents to reach felony thresholds, and remove the sunset on organized retail theft statutes
El Cerrito’s authorities should actively utilize these tools – for example, by aggressively prosecuting repeat offenders under the tougher statutes and collaborating with county and state task forces that target retail crime networks. By publicizing convictions and penalties, the city can also deter crime through awareness. In essence, better enforcement of laws can tilt the cost-benefit calculus for those considering theft. If the likelihood of jail time or felony charges goes up, some may think twice before raiding local stores.
- Reduce the Tax Burden on Businesses: To address the “high taxes” problem that experts have flagged, El Cerrito should consider adjusting its tax and fee structure to be more competitive. One recommendation is to reduce the local sales tax rate (or avoid further increases) so that it aligns closer to neighboring cities. Even a modest reduction could help eliminate the incentive for shoppers to leave town for big purchases. City leaders might worry about losing revenue, but recapturing sales that currently leak to other cities can offset some of the difference. Another idea is to revisit the real property transfer tax and business license fees for new enterprises. Temporary reductions or rebates for businesses that sign long-term leases in El Cerrito could attract outside investment. Lowering ongoing property tax rates is tougher (since those are largely set by county/state formulas), but the city could lobby for special zones or state incentives for distressed commercial areas.
- Offer Targeted Incentives and Streamline Permitting: Beyond tax cuts, El Cerrito can actively court entrepreneurs and retailers with incentive programs. This might include grants or loans for small businesses that fill vacant storefronts or tax credits for companies that hire locally. Streamlining the permitting and licensing process is also key – a faster, less bureaucratic process can be a selling point for opening in the city. For example, “offering grants, tax breaks, or streamlined permitting” were among the suggested steps to attract entrepreneurs in a recent local analysis. The city could establish an “open for business” task force to assist new business owners through the paperwork and even assign ombudsmen to troubleshoot issues like zoning or code compliance. These business-friendly moves can improve El Cerrito’s reputation and make it easier (and cheaper) to get a new shop off the ground.
- Invest in Community and Marketing: Finally, El Cerrito should double down on its underlying strengths to change the narrative. The city’s location – nestled between major employment hubs and accessible by BART – is an asset, as is its tight-knit community vibe. A concerted marketing campaign could promote available retail spaces, highlighting not just the location but any improvements (safety or tax-wise) the city is making. Partnering with the Chamber of Commerce and neighborhood groups to host events (farmers markets, street fairs, etc.) can help drive foot traffic to commercial districts, making them more attractive to prospective tenants. On the safety front, fostering community watch programs and encouraging residents to report suspicious activity can augment police efforts and demonstrate unity against crime. In the long run, restoring vibrancy to places like El Cerrito Plaza will require drawing shoppers back – which happens when there’s a critical mass of thriving businesses and a perception that it’s safe and pleasant to shop there. By actively improving conditions and spreading the word, El Cerrito can start to turn the tide.
El Cerrito’s recent wave of store closures did not occur in a vacuum. They are symptomatic of deeper issues: a challenging business climate marked by high operating costs, and public safety concerns that directly impact retail viability. The data shows that the city’s taxes and crime rates are out of step with those in more business-friendly communities nearby, making it difficult for El Cerrito to retain and attract the businesses that keep a local economy healthy. Yet, these challenges are not insurmountable. With thoughtful policy changes – from tax relief to tougher crime deterrence – and a proactive strategy to support merchants, El Cerrito can reshape its narrative. The road to a revitalized retail scene will involve balancing fiscal needs with incentives, and balancing smart policing with community-building. By learning from both its neighbors and its own citizens’ feedback, the city has an opportunity to create a safer environment and a fairer playing field for businesses. In doing so, El Cerrito can work toward once again being a place where national retailers and local mom-and-pop shops alike want to set up shop, confident that they can succeed and grow alongside the community.
Sources: Recent news reports, police logs, and local analyses were used to inform this overview, including crime statistics and expert commentary on El Cerrito’s tax policies. These illustrate the scope of the problem and the consensus on possible solutions, providing a roadmap for city leaders and residents aiming to reverse the tide of business closures. The challenge is significant, but with coordinated action, El Cerrito can address the twin hurdles of high taxes and crime rates – and usher in a new chapter of economic vitality.
El Cerrito Residents Must Speak Up
If you are concerned about the city’s financial future, now is the time to demand accountability from city leaders. Tell the council to stop shooting El Cerrito in the foot, with short term solutions and start making responsible budget decisions.
Contact Your City Officials Today:
📧 Mayor Carolyn Wysinger – cwysinger@ci.el-cerrito.ca.us
📧 Mayor Pro Tem Gabe Quinto – gquinto@ci.el-cerrito.ca.us
📧 Councilmember Lisa Motoyama – lmotoyama@ci.el-cerrito.ca.us
📧 Councilmember Rebecca Saltzman – rsaltzman@ci.el-cerrito.ca.us
📧 Councilmember William Ktsanes – wktsanes@ci.el-cerrito.ca.us
📧 City Clerk – cityclerk@ci.el-cerrito.ca.us
El Cerrito residents deserve better than reckless spending and financial mismanagement. Urge the City Council to stop rubber-stamping reserve depletion requests and start prioritizing long-term financial health.
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El Cerrito Committee for Responsible Government (ECCRG) 