Since its inception in the early '50s, Dollar Tree (DLTR) -) has a simple and admirable aim -- to make "high-quality, good value" merchandise at an affordable price for even those shopping with the most modest budgets.
With only one hike to its pricing in the past 36 years, the discount retailer clearly hopes to hold fast to its original intentions -- but it's facing a new problem that is about to make shopping at its stores much less convenient for its loyal customers.
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During its earnings call on Aug. 24, Dollar Tree Chairman and Chief Executive Rick Dreiling said the retailer was taking what he called "a very defensive approach to shrink."
Dreiling said that "several new shrink formats" would be put into place, including moving some items behind checkout stands or locking them up, which the chain has been considering for months.
But he also indicated that some items that have the highest rates of theft would be removed from stores altogether. The executive didn't specify which items these might be.
Dollar Tree has been fighting the theft issue for some time, missing earnings forecasts and cutting its outlook in May.
And Wall Street showed its concern after the latest call, as DLTR shares dropped 13% on Thursday. (At last check they were little changed.)
Retail theft continues to pose an unfortunate challenge for businesses far beyond Dollar Tree, judging by reports from CVS, Walgreens, Ulta Beauty, Target and more.
Nordstrom has called the theft issue for its stores "historic."
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