The old saying “crime doesn’t pay” may or may not be true, but shoppers at downtown Denver Sportsfan sports apparel stores are paying more because its owner has seen crime rise there.

In February, owner Derek Friedman started charging customers a 1% “Denver Crime Spike Fee” along with city and state sales tax, printed right on the receipt.

He said collecting the fee helps mitigate the rising cost of doing business downtown because of theft and shoplifting levels that are higher than his non-downtown locations.

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“We’ve been suffering, not just because of the COVID shutdowns and the protests, but just monstrous losses,” Friedman said. “We had to do something to recover those losses.”

Business losses due to theft from 2019 to 2022 at his downtown locations have tripled, he said. Friedman operates 10 stores statewide, four Sportsfan stores and six Sock Emporium stores.

After thieves smashed the front window at the Federal Sportsfan and stole some $25,000 worth of merchandise “in one fell swoop,” he filed a claim with his business insurance carrier. But after more incidents, Friedman said he feared the insurance company would drop his account.

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“After the second or third incident, we get a heads up from the agent asking about our security measures and if we’re investing there,” he said. “At some point, the insurance company is going to look at a business and decide if the risk is worth taking on. We were essentially told if we kept submitting claims, we could lose our insurance.

“I can’t lose my business insurance. I stopped submitting claims and began eating the losses.”

In addition to the “big incidents,” Friedman said shoplifters have grown more brazen.

“Nowadays people are just walking in, making for the racks and grabbing things and getting out,” he said.

He has invested in more cameras, security systems and advanced technology to try to curb the losses.

Friedman reprogrammed the point of sale machines at the two Sportsfan stores on the 16th Street Mall, as well as the one on Federal Boulevard near Empower Field at Mile High, and the Sock Emporium store at the Denver Pavilions, to itemize the 1% fee. It’s there with the “Denver Bag Fee,” and sales taxes to the Regional Transportation District, city of Denver and state of Colorado.

He also hired a security guard for the 16th Street Mall store, so as not to put clerks in the situation of having to confront shoplifters.

Friedman hasn’t heard of other downtown businesses doing the same.

Downtown Denver Partnership Executive Director Kourtny Garrett said downtown is slowly recovering from the pandemic shutdowns and protests in 2020-21.

Those epic events drained the downtown area of workers, pedestrians, shoppers and diners. That means fewer eyes and ears, less vibrancy and an enormous “impact on the environment,” she said. About 46% of office workers and weekday visitors have returned. It’s better still with weekend and special event pedestrian traffic, which has almost recovered to pre-pandemic levels.

“Activity has returned in a significant way to the city’s core,” Garrett said. “We’re seeing what activity can do and you really feel a difference when you’re here.

“All that being said, the challenges still remain for us. We’re working closely with the Denver Police Department and social service providers on public safety. Homelessness and crime are not synonymous. But when we see the point where they intersect, we’ll make sure those with criminal intent are held accountable and those in crisis are provided assistance.”

Asked if the “crime spike fee” has recouped the theft losses, Friedman said it will take another year-and-a-half at current sales levels to recover the losses.

On a bright note, Friedman said business has improved with the brisk sales of Russell Wilson Denver Broncos jerseys and the Colorado Avalanche’s playoff run.

“Those tailwinds have certainly helped.”