Dollar Tree is the latest brand to blame tumbling profits on thieves.
The brand reports increased foot traffic and sales in the second quarter. But their gross profit margin dropped to 29.8%, which is 290 basis points lower from where it was this time last year. CEO Richard Dreiling says “shrink” – or inventory losses due to theft, damages, and other causes – is partly to blame.
Dollar Tree and its sister franchise, Family Dollar, now say they will make changes this year to fight back. The CEO says this might mean keeping certain products in a locked case or letting stores drop commonly stolen products from their shelves entirely.
Dollar Tree joins Dick’s Sporting Goods, Walmart, Target, Home Depot, and Lowes in blaming slack profit margins on widespread thievery.