Shop at Walmart or Target? How a Controversial California Law is Causing Price Spikes on Arizona Shoppers

• The unintended consequences of a California law caused drastic price spikes in Arizona and other states.
• The ripple effect of the law on Arizona shoppers.
• The retailers who are pushing to reverse the law.

If it seems like every time you hit the grocery store, you're paying more and more, you're not alone.

Depending on who you ask, there's a wide array of factors to blame: labor shortages, supply chain disruptions, geopolitical events, and unstable weather patterns - these things all share some of the blame for the ridiculous spike in consumer prices. And I didn't even mention the effects of the global pandemic and shutdown, which is a big factor.

One more thing that's gaining a lot of attention is the cost of what retailers call shrinkage. The rest of the world calls it shoplifting or theft.

No matter what it's called, the problem has an increasing influence on how retailers do business across the United States.

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How California's Law Affected Price Spikes in Arizona

Self-checkout machines have been blamed for making shoplifting easier in some stores. While the practice of installing and using self-checkouts has increased loss for some retailers where it was meant to save money, this isn't the only thing that has caused prices to spike recently.

READ: The Danger of Using Self-Checkouts

Enter California. The financial website The Street, explains, "...a law passed in 2014, Proposition 47, made the type of theft that happens in retailers like Walmart and Target a misdemeanor and not a felony." Essentially, if the value of an item being stolen does not exceed $950, the crime is classified as a misdemeanor, not a felony.

The law was intended to address prison overcrowding by reducing nonviolent offense incarceration. Enter the backlash of unintended consequences. Essentially, California's law emboldened criminals, who were given the green light to steal, since it was unlikely they would get arrested if they were caught.

California, The World's 5th Largest Economy Influences Retail in Arizona

Since California has the 5th largest economy in the world, what happens in California doesn't stay in California. Their policies have a ripple effect across the entire country, including Arizona.

California's Proposition 47 was well-intentioned, but it's had a significant impact, affecting stores across the nation. Now retailers like Walmart and Target have seen fallout from this law, and they're pushing back.

The internet is full of examples of smash-and-grab robberies that have grown as a result of this law. In response, Target closed three California locations and six stores in other states last September, listing crime as the reason. For these and other retailers, the fallout continues and it's affecting shoppers in all states.

READ: Walmart's New Mandatory Changes Affect All Arizona Shoppers

Why Prices are Climbing in Arizona

All of this adds up to price increases across the country, and they're hitting Arizona shoppers right in the pocketbook. The increased cost of store security, product loss, and spiking insurance premiums combine to play a role in shaping prices not only in California but across Arizona and the nation.

According to Yahoo News, both Target and Walmart stores are leading the way to reverse Proposition 47 in California, but until things change, Arizona shoppers could continue to see prices rise.