Dollar Tree Implements Defensive Measures Against Rising Shrink as Consumers Shift Spending

Dollar Tree reported lower profits and narrowed earnings outlook, attributing the changes to shrinkage, fuel costs, and consumers buying more low-margin consumables.
The company plans to combat shrinkage by locking up or discontinuing certain products and introducing new anti-theft formats.
Dollar Tree joins other major retailers like Walmart and Target in addressing the rise of retail theft.
The retailer saw same-store sales growth at both its Dollar Tree and Family Dollar chains in Q2.
However, the company forecasts continued pressure on margins and profits due to economic conditions and consumer behavior shifts.