Stores hardly ever bother to sue people for damages for shoplifting, especially in a case where all items were recovered undamaged. Instead, they hire someone to send out demand letters like the one you got, figuring if they can simply scare you into paying they're ahead of the game. You don't have to pay. If they want to spend money to file a suit against you for damages, you can deal with it then. The more important thing is to deal as effectively as possible with the theft charge. Hire a criminal defense attorney to give yourself the best chance of avoiding a conviction. If you do secure a deferred disposition, follow through. A theft conviction is a very bad thing to have. Theft is a crime of dishonesty and prospective employers really dislike it.