The following report is by Entrepreneur:
The retailer’s last earnings report, whichwas released on Thursday, showed an overall increase in sales, but acknowledged that it is “not immune” to the ongoing “impact of elevated shrink.”
Since 2022, Dollar Tree has been facing the issue of “shrink“(inventory losses from theft, damage, and other factors) in its stores. Dollar Tree robbery arrests have occurred in states such as Florida, New York, and Pennsylvania.
The company, which owns and operates Dollar Tree, Enterprise, and Family Dollar stores, saw an increase in same-store sales across its brands, but a 0.5% decline in its gross profit margin for the second quarter of 2023. On the call, CEO Richard Dreiling and CFO Jeffrey Davis partially linked the drop to increased levels of shrink. Despite efforts to address the ongoing issue, the shrink problem has worsened far beyond what it “had anticipated,” Davis said.
Now, the retail giant is taking a more aggressive approach with measures ranging from increased items being locked behind shelves to discontinuing repeatedly sold products at certain stores altogether.
We are now taking a very defensive approach to shrink. We have several new shrink formats that we’ll introduce in the back half of the year, and it goes everything from moving certain SKUs to behind the check stand. It has to do with some cases being locked up. And even to the point where we have some stores that can’t keep a certain SKU on the shelf just discontinuing the item. So we have a lot of things in the works.
Dreiling said on the call.
Dollar Tree isn’t the only retail giant combatting elevated levels of theft. According to the National Retail Federation’s 2022 report on organization retail crime (ORT), of 63 retailers — which operate thousands of stores across the U.S. — 70% stated that the prevalence of shrink has increased over the past five years. Furthermore, 89.7% of respondents said that their loss prevention departments are taking actionable measures to combat the phenomenon, making it part of their “goals, objectives or performance measures.”
When accounting for the financial setbacks, the report found that the 1.4% increase in shrink accounted for $94.5 billion in losses in 2021.
AUTHOR COMMENTARY
It is also worth reminding that Dollar Tree raised their prices to a $1.25 on all their items – not a very big hike, but that is noteworthy because a store that has remained rocksteady on their $1 pricetag for a very longtime now has to up the price due to screaming inflation.
Make a chain: for the land is full of bloody crimes, and the city is full of violence.
Ezekiel 7:23
Crime in the U.S. is no longer a crime, the subject for a later report – but theft is being allowed to occur because the police are given directives to basically not do their job; and major retailers and cities have essentially set the trend of facilitating crime because they are allowing people to come in and literally steal up to a certain dollar amount before they can intervene, and the corrupt legal system and crooked lawyers will sue the pants off the store and worker for trying to stop the crimes. This is why we continue to keep seeing videos on social media of the braindead zombies filming crime and violence, and do nothing; far more interested in the likes they’ll get on social media than standing up for justice and loving your fellow man.
The country is broken. Stay safe, protect yourself, and walk circumspectly.
San Francisco Target Puts Entire Department Behind Security Glass Amidst Rising Crime
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
