Dollar General’s CEO confirmed that certain products are being removed from stores due to repeated thefts.
This comes amid a controversial removal of self-checkout records.
two
two
Dollar General is removing some products from stores in an effort to combat losses from theft.
While the discount chain hasn’t revealed exactly which items will go, they will be the most stolen products.
Retail theft “continues to be the most significant headwind,” Dollar General said, CEO Todd Vasos told analysts during an earnings call.
“We are implementing an end-to-end approach to loss reduction across the organization, including efforts across our supply chain, merchandising and in our stores,” he said.
Shrinkage is an industry term that refers to stolen or lost property.
Dollar General is also removing self-checkout registers in an effort to combat theft.
The company converted another 3,000 additional stores back to employee-operated registers in May alone.
12,000 of the approximately 20,000 Dollar General stores in the U.S. are now without self-checkout.
Vasos said the company received mostly positive feedback from store customers about removing the technology.
“The vast majority of our consumers [is] because they like the interaction in the front of the store,” he said.
“And with that interaction also comes having someone in front of the store clearly visible at all times, which, as you remember, wasn’t always the case in 2023.”
The company now expects shrinkage numbers to decline for the remainder of the year.
NEW STORES
Dollar General also has plans to expand its giant all over the country store footprint.
It plans to build 730 new stores this year and 70 more in 2025.
We are implementing an end-to-end approach to reducing losses across the organization, including efforts across our supply chain, merchandising and in our stores
Todd Vasos, CEO at Dollar
Meanwhile, 1,620 existing sites are being renovated across the country.
While Dollar General is expanding, many of its rivals are going out of business.
Family Dollar is closing 1,000 stores nationwide.
During an earnings call, CEO Rick Dreiling blamed a “very challenging macro environment” that led to the closure of these “underperforming” locations.
Dollar Tree acquired 170 99 Cents Only stores after bankruptcy threatened their closure.
And see why Dollar Tree is raising prices.
This story originally appeared on The-sun.com read the full story
