I have solid source (shit lib friend who hasn't drunk all the koolaid) close to San Fran so I can put some current context on the implosion.
The last DA, Chesa Boudin, was the son of literal terrorists, and he wasn't able to convince the people that SF wasn't dying around them, but the new DA, Brooke Jenkins, doesn't seem to be doing a much better job.
Boudin, and by proxy Mayor London Breed, helping create the current hellscape of SF cannot be overstated. Boudin effectively stopped all prosecution of Nogs, Spics, and Homeless, preventing ADAs from filing charges. The Police then stopped even trying to deal with crime because the DA was never going to charge the criminals they arrested for anything less than aggravated assault. Jenkins is much better, but the police are still demoralized and they lost of a good officers who went to areas that weren't dystopian hellscapes where they could actually do police work, and Jenkins is dealing with a DA's office full of people who were on board with Boudin's batshit lunacy, because anyone who actually wanted to see the law enforced left or was removed.
The only way you undo the damage done is by electing DA Dredd, but anyone sane moved out of SF years ago. Or is in a gated enclave with armed security sending kids to private school.
I don't see how they can be profitable with these locked up cabinets.
tl;dr: Scale. SF has a ton of people with a lot of money. So you can mark everything up 300% percent and they will pay becasue they have no other choice and you will sell a shit ton.
Until very recently, the constant theft by homeless & nogs was still offset by the amount of shit that was being sold at Urban Markup. What has changed is Cartels and (cheifly) Vietnamese Mafia are organizing shoplifting rings. A handler recruits idle nogs & homeless, gives them a backpack and offers them $20-50 or drugs if they bring it to a meetup spot full of shit from CVS. Some homeless guy swiping a bottle of astoglide was a rounding error, but the rings are now clearing out entire stores. They already have destinations, some in CA & NV but a lot in Vietname/SEA/AUS as well, adn they are able to handle as much product as they can get.
THIS is what is causing the stores to close up shop. And this is the sort of easily forseeable rot that is the end game of legalizing TNB.