Posted on 08/27/2023 5:17:47 AM PDT by dennisw
Dollar Tree had miserable quarter, company management is chalking it up to a mix of factors: changing consumer demands on top of higher prices for fuel and electricity … and theft.
The company’s chief executive and chief financial officer homed in on that last one on a call with Wall Street analysts Thursday.
Dollar Tree CEO Richard Dreiling and CFO Jeffrey Davis blamed a surprisingly large drop in gross profit margin — tumbling to 29.8% last quarter from 32.7% a year earlier — on “shrink,” the industry term for inventory losses due to theft, damages and other causes.
Davis said the company has taken steps to fix the problem, but the shrink issue is getting worse — and “definitely advanced a little further than what we had anticipated.”
In response, Dreiling said Dollar Tree and Family Dollar stores, which the company also owns, will take more drastic measures in the coming months.
“We are now taking a very defensive approach to shrink,” Dreiling told analysts Thursday. “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.”
Dollar Tree, Dollar General and other discount stores have had longstanding theft issues, operating stores with just a handful of employees who have at times been victims of violent robberies and other crimes. Dollar Tree employees have complained about unsafe working conditions, and OSHA Regional Administrator Kurt Petermeyer in Atlanta in February criticized the company for a “continued disregard for human safety”
(Excerpt) Read more at msn.com ...
A huge portion of retail shrinkage is due to employee theft.
I shop there just for the frozen Jamaican Patties, spicy beef to be specific. They used to be $1. Now $1.25 thanks to Bidenomics.
As long as these retailers continue to donate huge sums of cash to democrats and woke, leftist causes, they will get no sympathy from me. Reap what you sow and enjoy your descent into bankruptcy. Wake me up when they start donating to law and order republicans and non-woke law enforcement causes.
A real drag to have a conscious ...but it will pay off in the end.
I think of all the free stuff I could have if I could just shut down that still small voice in the back of my head.
But I hope I never do ... as a matter of fact .. I try to listen more closely.
I think the end-game of the Left’s War on Retail is to simply shut it down, as it’s one of the major reasons that people feel they need to own a car. It’s also easier to track what people are buying if it is known where the items are being delivered.
Suntan lotion is still available on open shelves.
Dollar tree deserves to go out of business. They raised prices to $1.25 each and cut the size of packaging by 25%.
That’s about 37% inflation. They and their theives deserve each other.
The collapse of western civilization proceeds apace.
Read similar about Dick’s Sporting Goods yesterday - they had an unprecedented amount of “shrinkage” - from theft.
DA in California refuses to prosecute retail thefts and the mayor says the problem is the Conservative Press, not retail theft gangs.
“LA Mayor Karen Bass Claims Conservative Press Is to Blame for People Feeling Afraid, Not Criminals.”
No wonder I’m seeing so many closed businesses in my LA suburb.
Have to keep things away from sub-humans like feral dogs.
I could clear up these problems by taking two steps:
Step#1. Deactivate all cell phone satellites in orbit except for those used by business, financial institutions, government, and the military.
Step#2. Jail every car dealer who allows his sales team to sell cars to people who can only afford to show proof of having bought a 30-day temporary insurance policy.
These two acts alone will eliminate 90 percent of society’s ills.
Why don’t they start consolidating the stores? In the Green Bay area, there are at least 8 or 9 Dollar Tree & Family Dollar stores. They’re over extended.
Sheeeiit!!
Nomsayin’?!?
“raised prices...cut the size of packaging”
Nothing is really a good value anymore there.
A store has to offer up some really good values and then rely on shoppers buying several more items at fair value pricing so the store can make a profit.
A store chain like Dollar Tree has to put itself in marketing position that will result in it being visited weekly.
It should raise its price point to $2 so it can buy stuff that uses standard packing equipment.
“Maybe they should charge your credit card or take a Cash deposit when people walk into store.”
The system could be based on gift cards.
30% profit margin and they’re saying it like it’s a bad thing. Wtf.
Every dead or dying retail mall has displayed the same symptoms. I saw the fragrance samplers get locked up in New Orleans, back around 1988.
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