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<br />May 4, 2026 <br />Mayor Valerie Amezcua <br />PAGE 2 <br /> <br />Specific to the policy, real-world experience and data shows regulating SCO has no impact on the intended <br />results claimed. SCO regulation to this point has only burdened its operation, both technically and legally, to <br />the point of forcing its removal. This puts Santa Ana brick-and-mortar grocers at a competitive disadvantage <br />to more convenient options like neighboring grocers and on-line options. <br />We know the Long Beach ordinance has not delivered on any of its intended results. Data from impacted <br />grocers has shown no change in retail theft rates,has resulted insignificantSCO removal due to the <br />operational and legal burdens, and has pushed shoppers to neighboring jurisdictions or on-line options, <br />especially those actively seeking convenience. <br />Data shows that 83% of shoppers have used SCO in the last 6 months. 45% of consumers prefer SCO options <br />which is a 5% increase from the previous year. 40% plus of Boomers, Gen X and Millennial shoppers prefer <br />ly put SCO is an offering necessary to serve consumer <br />preferences and retain their business. <br />It is the reality that SCO regulation has stifled the sustainability and expansion of brick-and-mortar grocery in <br />jurisdictions who have and are considering SCO regulation. Brick-and-Mortar grocery is under constant and <br />increasing competition from many other retail options to remain accessible and convenient with SCO <br />ordinances only making it increasingly more difficult. <br />We hope you understand that our concern for regulating SCO at this time and in this manner is based on <br />data and real-world experience in an effort to continue to nourish consumers, remain competitive in the <br />current marketplace and continue to provide quality job opportunities. Again, we ask the Council remove the <br />agenda item from this meeting and withhold any ordinance consideration until after Santa Ana grocers have <br />had a chance to genuinely engage in an open and respectful policy process. Thank you for your <br />consideration. <br />Sincerely, <br /> <br /> <br />Tim James <br />Director, Local Government Relations <br />California Grocers Association <br /> <br />cc: Councilmembers, Santa Ana City Council <br />