Victoria's small shops caught in violent crime wave

From ram raids to extortion, small retailers say they’re being left to fend for themselves as organised crime takes hold across Victoria.

It’s getting pretty grim out there for Victoria’s small retailers. The days of occasional petty theft and the odd ram raid have morphed into something far more dangerous: violent extortion fuelled by the booming illicit tobacco trade.

That’s the warning from MGA Independent Businesses Australia (MGA), which says shopkeepers are now being forced to pay a so-called “safety tax” or stock illegal cigarettes under threat of violence.

MGA CEO Martin Stirling says the situation has reached a crisis point.

“What had started as theft and then progressed to armed robbery has now dramatically escalated into violent extortion,” he said. “Retailers are now being forced by criminal gangs to pay a ‘safety tax’ or sell illicit tobacco products under threat of violence. Victoria is rapidly slipping into a lawless state. Families, workers, and communities are being put at risk every day.”

When crime comes to your corner store

The MGA says that in regional towns like Longwarry, family-run grocers and corner shops have long been the heart of their communities, but now they’re under siege. The latest violent ram raid on a Friendly Grocer has left locals shaken and operators terrified.

“These are mums, dads, and family-run businesses working tirelessly for their communities,” Stirling said. “When their shops are targeted, it threatens their livelihood, their employees, and the essential services they provide.”

The impact stretches beyond the businesses themselves. When stores close or stop selling legal tobacco altogether, it only strengthens the black market that’s funding these gangs in the first place.

From dodgy smokes to mafia tactics

The illicit tobacco market is booming, and organised crime has followed. The MGA says the trade is now so profitable that criminals are using it to bankroll more serious crimes.

“This is no longer just a retail crime issue — it is a community safety emergency,” warned Stirling.

“Criminal networks are operating with impunity, replicating the business models we see in failed states, not developed societies.”

That’s strong language, but for many shop owners, it rings true. From ram raids to threats and firebombings, retailers say they feel abandoned as police resources stretch thin and offenders walk free.

‘Enough is enough’: calls for government action

The MGA is calling on the Victorian Government to get serious about protecting small retailers and shutting down the criminal enterprises behind the chaos.

The lobby group wants practical safety measures and more police taskforces to help vulnerable small businesses, as well as stronger powers to shut down premises dealing in illicit tobacco.

“The status quo isn’t working,” Stirling said. “We need urgent, coordinated action now to protect family businesses, safeguard communities, and restore law and order.”

Small businesses on the frontline

It’s not the first time retail crime has dominated headlines in Victoria. Earlier this year, we reported on a spate of assaults and thefts that left small retailers fearing for their safety. Industry data showed a surge in violent and organised offences across the state, with small and independent operators bearing the brunt.

Stirling says independent retailers don’t have the same deep pockets or corporate muscle as the big chains. So it’s often family businesses where the owners live above the shop and employ locals who are being hit.

When a store like that is hit, whether by a break-in, an arson attack, or a threat from a criminal gang, business owners are personally impacted.

Retailers fight back

Retailers say they need real, on-the-ground support, including faster police responses, better protection, and tougher penalties for offenders, to address the escalating crime.

Some retailers have even started forming local safety networks to share CCTV footage and information as Victoria’s crime crisis continues to spiral. Others are banding together through groups like MGA to push for urgent government action.

Until then, though, many business owners feel like they’re fighting a losing battle. Victoria’s retail crime problem has gone well beyond shoplifting, and without a stronger response, the corner shop could become the next casualty in what’s shaping up to be a full-blown law and order crisis for small biz retailers.

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