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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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Heathrow among major airports hit by delays after cyber attack

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Heathrow among major airports hit by delays after cyber attack

Heathrow was among a number of major airports across Europe hit by delays after a suspected cyber attack that targeted a service provider for check-in and boarding systems.

The “technical issue” affecting Collins Aerospace, which provides check-in and boarding services for various airlines, resulted in 14 flights being cancelled at Brussels Airport on Saturday, and several more being delayed at London Heathrow, Berlin, and Dublin, among others.

‘Very clever cyber attack’ cancels flights in Europe – latest

Passengers have reported being unable to check in online, instead queuing for hours for staff to deal with them manually at desks and departure gates, only to be told their flights are not taking off.

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Helen Steel, 49, left Dorset for Heathrow at 3am to travel home to Oslo, with her cat Thomas – but was “shouted at by staff” who told her she would not be able to fly until Sunday.

Describing the situation as an “absolute nightmare”, she said: “I’ve got an animal here, so I’m very concerned about his welfare.

“I’ve been shouted at twice and I broke down in tears because I was worried about him. None of us have had any information whatsoever. Whenever we ask ground staff, they shout at us.”

Ms Steel says she spent two hours in the queue on the phone to customer service and is now having to find a hotel to stay in overnight.

Sam arrived at Heathrow expecting to drop his girlfriend off for her flight to Rio de Janeiro – but was still at the airport seven hours later.

Sam has been at Heathrow for seven hours after his girlfriend's flight to Rio was cancelled
Image:
Sam has been at Heathrow for seven hours after his girlfriend’s flight to Rio was cancelled

When they arrived, it was “chaos everywhere”, he told Sky News, with “nobody seeming to know what was going on”.

The couple say they were not told about the cyber attack by airport staff, finding out about it online instead.

After queuing for three hours, they made it to the front, only to be told the plane was not taking off, he adds.

“Her flight was at 8.40am and it was held back until 10.15am. At 10.10am they sent everyone away and told them to contact the airline. But there are no representatives for any airlines whatsoever. It’s been a bit of a farce.

“Nobody knew where they were going – and they were sending people left, right, and centre.

“She’s going tomorrow now, but we’ve got to find a hotel, and no one is here to give us any hotel vouchers. They just give you a piece of paper and say ‘you’ve got to pay for it yourself’.”

Passengers wait for news at Heathrow Terminal 4. Pic: PA
Image:
Passengers wait for news at Heathrow Terminal 4. Pic: PA

‘Insane queues’ and ‘skeleton staff’

Passenger Tereza Pultarova waited around 10 hours at Heathrow after she arrived at 4.30am for her flight to Cape Town via Amsterdam.

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Tereza Pultarova had to wait 10 hours at Heathrow

“We were kind of stranded here because KLM wasn’t able to issue us boarding passes digitally, and requested us to collect them at the check-in desk,” she said.

“And then they told us that there is some sort of global issue with the system they’re using for check-in and boarding, and they have to do everything manually. So then they were checking in people at the rate of, like, one person per 10 minutes.

“I’m not exaggerating. It was just insane, the queue wasn’t moving. And then suddenly they said, ‘Oh, the flight will be departing, we’re closing the gate’.

Maria Casey was due to fly to Thailand with Etihad Airways – but had to wait three hours to drop off her luggage at Heathrow, with staff taking between five and 10 minutes to deal with each passenger.

Queues at Heathrow. Pic: PA
Image:
Queues at Heathrow. Pic: PA

“The queues are terrible,” she told Sky News. “It was an absolute skeleton staff. Out of six of the desks there were probably two people”.

A Heathrow spokesperson advised people to arrive no more than three hours early for a flight and apologised for any inconvenience.

It is understood British Airways at Terminal 5 remains unaffected and is operating as normal.

Collins Aerospace said it is working to resolve the issue as soon as possible.

“We have become aware of a cyber-related disruption to our Muse (Multi-User System Environment) software in select airports, the firm said in a statement.

“The impact is limited to electronic customer check-in and baggage drop and can be mitigated with manual check-in operations. We are actively working to resolve the issue and restore full functionality to our customers as quickly as possible.”

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‘Delighted to be free’: Elderly British couple who were detained by Taliban arrive in UK

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'Delighted to be free': Elderly British couple who were detained by Taliban arrive in UK

An elderly British couple who have arrived back in the UK after being detained in a maximum security Taliban prison are “delighted to be free”, their son has told Sky News.

Barbie Reynolds, 76, and her husband Peter, 80, were arrested in February after spending decades in Afghanistan, where they have dual citizenship.

They had been held without charge before being released from detention on Friday and flown to Qatar, where they were reunited with their daughter, before flying back to Heathrow Airport on Saturday.

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Freed couple reunites with daughter

The couple’s son, Jonathan Reynolds, told Sky News: “They’re just delighted to be free… they’re very excited to see their kids and grandkids and great grandkids, people they’ve just been wanting to catch up with and wondered if they’d ever see them again.”

Jonathan, who spoke to his parents from Wyoming in the US in a FaceTime call with some of his siblings, said: “I’ve seen photographs of them in hospital beds getting checked. I’ve seen them having full English breakfasts. So they’re jumping on that.”

Peter Reynolds enjoys breakfast after his release
Image:
Peter Reynolds enjoys breakfast after his release

He described some of the conditions his parents had been kept under in a “big maximum security prison with thousands of inmates”.

“My dad described being handcuffed or chained to other criminals. And, one point he had his chest hairs ripped out,” he said.

More on Afghanistan

“He was hit in the head. And, then they were moved, to more of a safe house.”

Peter Reynolds gets hospital check-up
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Peter Reynolds gets hospital check-up

But Jonathan said his parents retained their British politeness even when calling him from a payphone in the prison yard, with his dad asking: “Is now a good time?”.

“It was totally, ‘Yeah, not too bad. Where’s the queue to get out of here?'”

The UK government advises British nationals not to travel to Afghanistan.

Abdul Qahar Balkhi, a spokesperson at the Taliban government’s foreign ministry, said in a statement posted on X that the couple “violated Afghan law” and were released from prison after a court hearing.

He did not say what law the couple were alleged to have broken.

Sky correspondent Cordelia Lynch was at Kabul Airport as the freed couple arrived and departed.

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Sky’s Cordy Lynch speaks to released couple

Mr Reynolds told her: “We are just very thankful.”

His wife added: “We’ve been treated very well. We’re looking forward to seeing our children.

“We are looking forward to returning to Afghanistan if we can. We are Afghan citizens.”

The couple have lived in Afghanistan for 18 years and run an organisation called Rebuild, which provides education and training programmes.

They have been together since the 1960s and married in the Afghan capital in 1970.

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Forget Tesla hype — Einride begins public L4 autonomous electric semi operations

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Forget Tesla hype — Einride begins public L4 autonomous electric semi operations

While Tesla has struggled to deliver on the hype of its self-driving promises, Einride has been quietly developing a Level 4 self-driving electric truck. Now, that quiet effort is paying off. For the first time, the company is operating a fully autonomous, heavy-duty EV on public roads in Europe.

The Einride Level 4 autonomous HDEV is being operated under a relatively new Belgian regulatory framework, and showcases how Einride (and Europe) might hope to take the lead in advancing autonomous freight technology. Now in service at the Port of Antwerp-Bruges, one of the most complex logistics centers in the world, Einride believes its autonomous trucks can move goods with more efficiency and lower emissions than human-driven, diesel-powered rivals.

“Antwerp is more than a logistical hub,” explains Johan Klaps, an alderman at the port of Antwerp. “(Antwerp) is also a place where the mobility of tomorrow is tested and concretized. Autonomous and sustainable applications such as Einride’s proves that innovation is a driver for competitiveness and economic growth.”

Einride autonomous HDEV


The Einride truck itself is an impressive piece of engineering, fitted with a robust 320 kWh li-ion battery pack that promises more than 650 km (405 miles) of all-electric range, thanks to a combination of slippery aerodynamics, energy-efficient electric drive motors, and (of course) the energy-smart driving tactics employed by its impressive self-driving software.

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Einride says its autonomous driving system (backed by a remote operator, Waymo-style, to help deal with edge cases) processes over 5 million data points per second, using radar and LiDAR to feed AI that generates real-time driving instructions for seamless navigation and freight delivery. And, thanks to its purpose-built, cab-less design and 82,000 lb. GVWR, each electric truck can operate with fewer than one remote operator per vehicle, paving the way for far more cost-efficient and expansive logistics operations without the need for many more operators.

“What we are seeing today in Antwerp perfectly aligns with European ambitions,” says Andrea De Candido, Connected, Cooperative and Automated Mobility (CCAM) DG RTD – European Commission. “(We’re) developing innovative technologies that are efficient, safe, sustainable and scalable. Through pioneering projects like this, we strengthen Europe’s position in future-oriented automated mobility solutions.”

With driver shortages still hitting the industry and electric semi fleets already running across Europe, the Middle East, and even here in the US, it’s only a matter of time before Einride rolls out its autonomous trucks in more markets.

SOURCE | IMAGES: Einride; via LinkedIn.


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