Dollar General drops self-checkout to reduce theft

Dollar General is eliminating self-checkout systems at all stores in an effort to curb retail theft.

The company’s CEO, Todd Vasos, told analysts on an earnings call Thursday that self-checkouts were removed from 300 stores with the biggest problems with shrinkage (an industry term for lost or stolen items) in the first half of this year. He said he would remove it inside.

The company currently has self-checkout options available in more than 14,000 stores. However, the company is rolling out three initiatives this year to change its self-checkout strategy to alleviate ongoing headwinds.

In the most recent quarter, the company’s “year-over-year contraction headwinds continued to strengthen throughout the year, increasing by more than 100 basis points in both the fourth quarter and the full year,” CFO Kelly Dilts said on an earnings call.

In the most recent quarter, gross profit as a percentage of sales decreased 29.5%, or 138 basis points, primarily due to business contraction, Diltz said.

To help with this, the company has already begun converting self-checkout registers to assisted checkout options in approximately 9,000 stores.

“This is aimed at first directing traffic to the manned registers, with cashier assistance options available as a second or third option to reduce queues during busy times,” Vasos said. .

Dollar General is closing self-checkout lanes at hundreds of stores to combat rising theft. spectrum news

The company is also limiting self-checkout to transactions of five items or less.

Vassos said the company believes “these actions could have a material positive impact on wind-down” from the second half of this year into 2025.