Dollar General drops self-checkout at hundreds of stores to reduce theft

Dollar General is pulling backmost connected self-checkout arsenic it tries to curtail unit theft crossed its stores. 

The institution will region self-checkout registers from 300 stores that person nan biggest rumor pinch shrink – an manufacture word referring to mislaid aliases stolen merchandise – during nan first half of nan year, CEO Todd Vasos told analysts connected a Thursday net call. 

Currently, nan institution has self-checkout options disposable successful much than 14,000 stores. However, it is deploying 3 initiatives to alteration its self-checkout strategy this twelvemonth arsenic it tries to trim nan ongoing headwind.

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In its astir caller quarter, nan institution reported that "year-over-year shrink headwinds continued to build during nan year, expanding much than 100 ground points for some nan 4th fourth and afloat year," CFO Kelly Dilts said during nan net call.

A motion hangs supra a Dollar General shop connected Aug. 31, 2023, successful Chicago. (Scott Olson/Getty Images / Getty Images)

In its latest quarter, gross profit arsenic a percentage of income fell 29.5%, a alteration of 138 ground points, which Dilts said was driven successful ample portion by shrink. 

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To help, nan institution has already started converting self-checkout registers to assisted-checkout options successful astir 9,000 stores.

A motion hangs supra a Dollar General shop connected Aug. 31, 2023, successful Chicago. (Scott Olson/Getty Images / Getty Images)

"This is intended to thrust postulation first to our staffed registers, pinch assisted-checkout options disposable arsenic 2nd aliases 3rd options to trim lines during high-volume time," Vasos said. 

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The institution is besides limiting self-checkout to transactions consisting of 5 items aliases fewer.

Vasos said nan institution believes "these actions person nan imaginable to person a worldly and affirmative effect connected shrink" successful nan 2nd half of nan twelvemonth and into 2025.