Dollar General’s CFO, Kelly Dilts, said during the call with analysts that the company expects “approximately $100 million of additional shrink headwind” to the business going forward.

Retailers large and small say they are struggling to contain an escalation in store crimes — from petty shoplifting to organized sprees of large-scale theft that clear entire shelves of products. Target warned earlier this year that it was bracing to lose half a billion dollars because of rising theft. It reported a large number of incidents of shoplifting and organized retail crime in its stores nationwide.

At the same time, it’s not clear that store crime is growing significantly more serious. Within the industry, at least one major player has argued that the problem is being overhyped.

Owen said Dollar General is taking theft seriously. “With sales and shrink not where we want them to be, we have evolved how we are thinking about the rest of 2023,” he told analysts. To spur sales going into the all-important, year-end holiday shopping period, he said, Dollar General will offer more discounts, primarily in non-consumable products to lure more customers more frequently into its stores.

Source: CNN