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Even dollar stores are getting slammed by the retail theft crisis.

Dollar Generals shares tanked Thursday after the discounter provided a bleak outlook for the rest of the year because of rising thefts and weak consumer demand at its 19,000 stores nationwide.

The Tennessee-based company warned Wall Street that profits may plunge by as much as 34% compared to its previous forecast for an 8% decline to flat growth as cut its full-year profit and sales targets for the second time this year.

“Our revised guide is really a function of the slower transactions that we’re seeing, and higher expected shrink,” Dollar General CFO Kelly Dilts said on a call with analysts after the company reported quarterly earnings that fell short of Wall Street estimates.

The reference to “shrink” — an industry term for stolen or damaged goods — follows a troubling trend cited by other major retailers who have blamed the scourge of organized retail theft for impacting their bottom line.

Target has said it expects to lose $500 million because of theft at its stores.

Dollar Tree said in May that it would need to raise prices in some regions because of persistent shoplifting.

Dollar General’s gross profit as a percentage of net sales fell 126 basis points in the quarter as retail shrink worsened. It flagged $100 million in additional shrink headwinds since its last earnings call in June.

CEO Jeff Owen did not elaborate on the extent of the theft, instead pointing to still-stubborn inflation for shoppers feeling “financially constrained.

Dollar Generals core customers are feeling the acute pressure of the cost-of-living-crisis, echoed Neil Saunders, retail analyst and managing director at GlobalData, in a report Thursday. 

Dollar General lowered its same store sales guidance to a decline of about 1% and 1% increase compared to its previous forecast of a 1% to 2% increase.

The companys comparable sales dropped by 1% in the second quarter ended Aug. 4 and the company expects a pileup of inventory to be a drag on its earnings for the rest of the year as it slashes prices on items that havent been selling.

The quarter “marks the fourth consecutive guide down for Dollar General, which admittedly creates further uncertainty if we are hitting the bottom yet,” said Raymond James analyst Bobby Griffin.

The stock nosedived down more than 12% Thursday to close at $138.59.

It has tracked a nearly three-and-a-half-year low, slumping as much as 18.2% to hit $128.96 — making it one of the worst performers on the S&P 500 index this year.

As inflation continued to batter shoppers this year, more customers flocked to Dollar General and its rival Dollar Tree among other big discounters.

But food and other essential items are less profitable for those stores as profit margins on food are anemic.

While we are not satisfied with our overall financial results, we made significant progress in the second quarter improving execution in our supply chain and our stores, as well as reducing our inventory growth rate and further strengthening our price position, Owen said in a statement. 

With Post wires

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Strawberry fields forever? The West Sussex farm growing berries in December

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Strawberry fields forever? The West Sussex farm growing berries in December

Acres of sweet, red strawberries are ripening in West Sussex this winter ready to be sold in UK supermarkets.

LED lighting in vast glasshouses is enabling berries to be grown all year on a commercial scale for the first time ever.

It means less reliance on fruit flown in from countries like Egypt.

Bartosz Pinkosz
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Bartosz Pinkosz

“The LED lighting is the prime reason for successful growing,” said Bartosz Pinkosz, operations director of The Summer Berry.

“If it was not a sunny day, the LED lighting would create enough energy for leaves to absorb that energy, take it in and deliver the energy to the berries.

“We are able to have the right sweetness in the berries and the right shape, right size.”

There are 36,000 square metres of the greenhouses at the site in Chichester, partially powered by renewable energy and buzzing with bees as pollinators.

Acres of strawberries ripening in West Sussex
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Acres of strawberries ripening in West Sussex

And the new strand to the business means year-round work for 50 people.

But while it might cut the food miles dramatically, there’s still an inevitable environmental impact when a colossal space is created warm enough for pickers to wear short sleeves in winter.

Dr Tara Garnett, director of food systems platform TABLE, said: “You’re going to need a lot of heat and you’re going to need a lot of light in order to reproduce those summer growing conditions so everything hinges on the energy source you’re going to be using.

“And when we look at the UK self sufficiency levels in fruit and vegetables they are appalling – 16% of the fruit we consume is UK-grown, so the vast majority is imported, and when it comes to vegetables we’re looking more at 50% or so, so there’s a lot more we can do to build up, and should be doing.”

Around 1.5 million punnets of strawberries are expected to be picked on the site over the full stretch of winter, allowing British strawberries to be eaten this Christmas.

But for some, it’s simple – strawberries should be saved for summer, even if it is a much shorter journey from plant to plate.

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The shock of a shooting will cut deeply – but if anywhere can find hope in the face of despair, Providence can

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The shock of a shooting will cut deeply - but if anywhere can find hope in the face of despair, Providence can

“Most of us live off hope” – the text of a colourful mural, painted on a wall on Hope Street, Providence.

On most days, the neighbourhood around Brown University feels like a place of quiet optimism, swimming against the negative tide.

Hope Street's mural
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Hope Street’s mural

The shock of a shooting, that has claimed two lives and left eight others critically wounded, will cut deeply here.

Violence feels not just intrusive but incompatible with the spirit of a place that is governed by thought, not threat.

When the university president said “this is a day we hoped would never come”, she spoke for the whole town.

Two students were killed in the attack
Image:
Two students were killed in the attack

Providence, Rhode Island, is a place I know well. My daughter, her husband and their two little girls live there.

It is a college town with a college vibe, the compact campus priding itself on openness – architecturally, intellectually and emotionally.

They rehearse “shelter-in-place” scenarios, as every university does, but they are not experienced at living behind locked doors.

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‘Stay inside,’ mayor warns as suspect still at large

Rhode Island, the smallest state, has one of the lowest gun-death rates in America, zero mass shooting events in 2024.

Earlier this year, the state banned the sale and manufacture of assault weapons, but it didn’t include those already owned.

Even in a Democratic, liberal state like Rhode Island, they are struggling to find a solution to America’s gun problem.

People hug each other outside Brown University in Providence after the shooting. Pic: Reuters
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People hug each other outside Brown University in Providence after the shooting. Pic: Reuters

The age-old constitutional right to bear arms continues to trump the most human of all rights – the right to life.

This is a community that assumes safety, not because it is naïve, but because it has grown accustomed to trust.

College Hill rises in gentle brick and ivy, its narrow streets winding past houses with verandas designed for long conversations.

They take place in hushed tones right now, but if anywhere can find its way out of despair, Providence can.

On the historic street along its east side and in the college on the corner, most people live off hope.

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US director and actor Rob Reiner and wife found dead ‘with stab wounds’ at his LA home

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US director and actor Rob Reiner and wife found dead 'with stab wounds' at his LA home

US director and actor Rob Reiner and his wife have been found dead at their home in Los Angeles, Sky News’s US partner NBC News has reported.

A source close to Reiner told the outlet he and his wife, Michele Singer Reiner, apparently died of stab wounds.

A family member is being questioned by investigators, a law enforcement official told the AP news agency.

A 78-year-old man and a 68-year-old woman were found dead inside the property, a Los Angeles Fire Department official said. Reiner turned 78 in March.

Detectives from the LAPD Robbery Homicide Division have been assigned to the case, the force said in a statement.

‘Apparent homicide’

LAPD Captain Mike Bland said they were investigating an “apparent homicide”.

Reports said there was a large police presence at the house.

Reiner starred in Sleepless In Seattle and The Wolf Of Wall Street and directed This Is Spinal Tap, The Princess Bride, When Harry Met Sally and A Few Good Men.

Los Angeles mayor Karen Bass said Reiner’s death was a devastating loss for the city.

“Rob Reiner’s contributions reverberate throughout American culture and society, and he has improved countless lives through his creative work and advocacy fighting for social and economic justice,” she said.

“An acclaimed actor, director, producer, writer, and engaged political activist, he always used his gifts in service of others.”

‘Creative, funny, and beloved’

Former House speaker Nancy Pelosi said: “It’s hard to think of anyone more remarkable and excellent in every field and endeavour they pursued. Rob was creative, funny, and beloved. And in all of their endeavours, Michelle was his indispensable partner, intellectual resource, and loving wife.

“Personally, Rob cared deeply about people and demonstrated that in his civic activities – whether by supporting the First 5 initiative or fighting against Prop 8 in California. Civically, he was a champion for the First Amendment and the creative rights of artists. And professionally, he was an iconic figure in film who made us laugh, cry and think with the movies he created.”

Reiner and his wife Michele Singer Reiner. Pic: AP
Image:
Reiner and his wife Michele Singer Reiner. Pic: AP

Actress Kathy Bates told NBC News: “I’m horrified hearing this terrible news. Absolutely devastated. I loved Rob. He was brilliant and kind, a man who made films of every genre to challenge himself as an artist. He also fought courageously for his political beliefs. He changed the course of my life. Michelle was a gifted photographer. She shot my beautiful photos for the Misery campaign. My heart breaks for them both. My thoughts are with their family.”

Reiner was married to Michele Singer Reiner since 1989, after they met while he was directing When Harry Met Sally. They have three children together.

Michele used to work as a photographer and took the photo of Donald Trump that appears on the cover of his book Trump: The Art Of The Deal.

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