As prices continue to rise in Florida and beyond, some consumers are turning to deep discount stores such as "dollar stores."
Statistics About Dollar Stores: According to NPR, in the summer of 2022, both Dollar Tree and Dollar General saw rises in stock prices after optimistic earnings calls. Willy Shih, a professor at Harvard, told NPR that people feeling the impact of inflation were looking for lower prices.
In the summer of 2023, Convenience.org reported that households making $100,000 were 15% more likely to shop at a dollar stores than they were at the same time a year ago.
With more people taking advantage of dollar store's lower prices, it may be no surprise that the retailer Dollar Tree recently announced it was going to be taking a similar approach to a recent retail problem that has reportedly been experienced by retailers such as Target and Walmart.
The Dollar Tree Discusses "Cases Being Locked Up" In Response To "Shrink": The idea of a retailer locking away some items behind the counter or in a case is not a new one. Retailers like Target and Walmart have recently announced similar moves.
Some retailers have spoken about dealing with "shrink" which is when retailers suffer the loss of product because of something other than sales. Some retailers have blamed "shrink" on organized crime or self-checkout machines.
It seems that Dollar Tree is not immune to shrink because during its second-quarter earnings call, Bob LaFleur, Dollar Store's Senior Vice President of Customer Relations, addressed shrink and said that some items may be placed behind the "check stand" or put in cases. Specifically, LaFleur stated, in part:
"We are now taking a very defensive approach to shrink. And it's taken us a quarter, but we have several new shrink formats that we'll introduce in the back half of the year. And it goes everything from moving certain SKUs to behind the check stand. It has to do with some cases being locked up..."
Florida Has Allegedly Had A Recent Issue With a Retail Theft Ring: According to WFLA, in October of 2023, more than a dozen suspects faced charges for being part of a "criminal organization" that allegedly contributed to more than $20 million in losses. Some of the alleged retail victims were stores such as CVS, Publix, Winn Dixie, Walgreens, Costco, Target, and Best Buy, to name just a few.
The author is not affiliated with any retailers mentioned in this article.