- Dollar Tree could raise prices due to theft.
- The retailer says its profits are down this year.
- What does this mean for shoppers?
Dollar Tree could be raising prices. Times have been hard for various retail chains in the United States, like Target. Now Dollar Tree shoppers are getting bad news as prices may be going up due to theft.
In addition to crime, the company also noted that price increases are being considered because the store is going through a rough patch financially, as profits continue to slide.
Dollar Tree could raise prices due to theft
According to the New York Post, the US-based discount chain is going through a hard time. The company’s financial director now says prices could rise for customers.
Jeff Davis, Dollar Tree’s chief financial officer says they plan to «improve our performance on shrink through defensive merchandising efforts, real estate optimization, and perhaps higher prices to compensate for areas of systematically higher shrink.» Shrink refers to theft or loss of inventory.
What profits are projected?
On the other hand, the company also indicated that the price increase will be «temporary». The company anticipates that the financial situation will improve over time.
Dollar Tree said Thursday that it projects its earnings per share for the fiscal year to end in the range of $5.73 to $6.13, an amount the company expected due to more shrinkage.
Theft is an ongoing problem for major retailers
The company’s financial director, Jeff Davis, pointed out that there are «all kinds of psychopaths» who are involved in theft after closely observing the crimes at Dollar Tree.
Davis also noted that other businesses have been dealing with higher levels of theft and noted that they will do everything within their power to level the company’s financial position, as well as take new steps to prevent shoplifting.
New technologies to prevent theft
CEO Rick Dreiling stated that the change in consumables and the impact of reduced profits will only be for a while. “I think if we are realistic here, this change in consumables and this impact reduction are transitory,» he said, according to the New York Post.
Jeff Davis concluded by noting that the company will install new technologies inside the stores to more closely monitor the store and prevent theft, as well as cooperate with local police.