June 7th 2024.
Dollar General, a popular discount chain, has recently made some changes to the way customers can check out their groceries at their stores. According to Retail TouchPoints, the self-checkout lane has been removed from around 12,000 stores since the beginning of the year. However, the company has assured that there will still be some self-checkout options available. During a recent earnings call in May, CEO Todd Vasos explained that only a limited number of stores, mainly those with high volume and low shrinkage, will still have self-checkouts.
The main reason for this change is due to something called "shrink". As CNBC defines it, shrink refers to various factors such as employee theft, shoplifting, errors made by cashiers, damage to products, and vendor fraud. This has become a growing concern for many retailers, including big names like Walmart and Target, who have also been cutting down on their self-checkout lanes.
Vasos shared, "Shrink continues to be the biggest challenge for our business, and we are taking a comprehensive approach to reduce it across all aspects of our organization. This includes implementing measures in our supply chain, merchandising, and in-store operations." According to Fox Business, this decision has helped Dollar General tackle one of their major problems - retail theft. They have also announced plans to remove items that are commonly stolen from their stores. In fact, they have already started converting self-checkout registers into assisted-checkout options in 9,000 stores.
But that's not all, Dollar General is also determined to address another issue that has been plaguing their business - high turnover among store managers. Retail TouchPoints reports that this has been a persistent problem for the company in recent years. However, Vasos shared some positive news, saying, "While we still have a ways to go, we have seen a decrease in turnover compared to last year at all levels of our retail operations - from regional directors to sales associates. We are proud of this progress and are encouraged to see our efforts being recognized by our team on the ground."
Despite these challenges, Dollar General has seen a 6.1% increase in the first quarter of 2024, with net sales reaching $9.9 billion. This shows that the company is making strides in addressing their concerns and is on track to achieve their goals. With their strategic approach to reducing shrink and retaining employees, Dollar General is setting a good example for other retailers to follow.
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