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.
The Edinburgh Fringe, the world’s largest arts festival, is getting under way, and the conflict in Gaza seems to be feeding into what’s happening.
From shows cancelled to artists divided, it’s no joke.
Rachel Creeger has had a distressing start to her stand-up run.
Two weeks ago, out of the blue, she says the venue Whistle Binkies rang her and fellow Jewish comedian Philip Simon to cancel their slots.
Image: Rachel Creeger says her Edinburgh shows have been cancelled by the venue
She told Sky News it’s come down to “what we bring to that venue by being ourselves”.
The pair were allegedly given three reasons for the cancellation.
One was linked to a “vigil for IDF soldiers” that she says the venue initially claimed had been held during her performance last year but, according to Creeger, later had to admit hadn’t taken place.
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“That never happened,” she insists.
Rachel says she was told her previous performances there had resulted in the venue having to pay for graffiti to be removed from toilet doors every three days.
“Again, we didn’t see evidence of that at all,” she says.
“We’re not the ones writing it… but if it was bothering them and they worried it was bothering us, then maybe we’d have volunteered to help them – or to help clean it.”
She claims she was also told the venue was responding to staff concerns about their own safety should Creeger’s show go ahead.
“It’s a pub in Edinburgh, it’s a music venue, they themselves have bouncers most evenings… And perhaps they might say if there’s a concern about extra risk, we should do all we can to make our performers safe.”
‘More unites us than divides us’
Creeger says her show is in no way political.
“It’s based around the idea that a Jewish mother can answer any question, solve any problem… I will make it better for you, the audience gets to write a question and put it into a chicken soup pot… The reason I kind of love it is because by the end of it people leave feeling actually more unites us than divides us.
“We’re not the people making the trouble,” she adds.
“I’ve certainly never started a protest, I’ve never done graffiti, I’ve never caused harm anywhere; my show doesn’t do that, my show is lovely.”
As Britain’s only touring comedian who is also a practising Orthodox Jew, she says since the 7 October attack she and other Jewish comedians are experiencing a significant increase in antisemitism while performing.
“We’re not Israeli, we’re British Jews,” says Creeger.
“The situation there is horrendous and distressing and painful for people of any number of religions and races… To be kind of scapegoated with dog whistles around that is clearly very, very unpleasant.”
The Fringe Society has said its role is to provide support and advice to all participants at the festival “with a vision to give anyone a stage and everyone a seat”.
A spokesperson explained they don’t manage or programme venues and “we understand that the show cancellations have been a choice made by the venue”.
Whistle Binkies hasn’t responded to multiple requests for comment.
Police Scotlandtold Sky News it hasn’t “received any reports of concern” about Creeger’s show.
There are, of course, huge sensitivities when it comes to discussing what’s going on in the world right now.
American stand-up Zainab Johnson is making her Fringe debut this year.
While her show Toxically Optimistic is all about putting a positive spin on life’s challenges, she doesn’t shy away from tackling the serious stuff if it comes up.
Image: Zainab Johnson says her show doesn’t shy away from tackling serious issues
‘Shows becoming serious is a part of life’
“If I’m doing a show and somebody wants to yell out Free Palestine, well let’s talk about it,” she tells Sky News.
“I am the comedian where, if the show has to become serious, it becomes serious. That’s a part of life, you know?”
Johnson adds: “I’m from the United States and they talk about free speech all the time, but then you find out free speech ain’t really free because the moment you say something that is contrary to what the majority feels or wants to be heard, then you can be penalised…
“But isn’t that the beauty of this festival? So many people just telling their story, whatever their story is.”
Comedian Andy Parsons has had a long-standing career in satire, appearing regularly on shows like BBC2’s Mock the Week.
While he has the likes of Elon Musk and Nigel Farage in his sights for his stand-up show, Please #@!$ Off to Mars, they’re not his only focus.
Image: Andy Parsons says comedians ‘should be able to talk about anything’
He says stand-ups “should be able to talk about anything and find a way to get that to work, including Israel and Gaza”.
He explains jokingly: “I’ve got some stuff about Israel in the show and obviously it can work both ways. It can give you some publicity and obviously it can get you cancelled.”
Irish-Palestinian comedian Sami Abu Wardeh – a clown comic – is the only Palestinian doing a full run of a comedy show at this year’s Fringe.
“My show is clowning, it’s storytelling, it’s even got a bit of stand-up and it’s heavily inspired by the comedian Dave Allen, who is one of my comedy heroes,” says Wardeh.
“It felt really important that I come and just exist in this space, as a Palestinian, and speak my words and have my voice heard.
“I’ve used all of these skills to make a show that is about really what’s going on in this country and in the world at the moment.
Image: Irish-Palestinian comedian Sami Abu Wardeh is the only Palestinian doing a full run at this year’s Fringe
“I think most people in this country are going to recognise that Britain is in a very dark place… and I’m hoping to reach those people and to give a voice to the dissatisfaction.”
‘Plans in place’ for disruption
He’s had to consider the possibility of protests and take steps to “make sure that the audience and myself are safe and secure”.
“We have plans in place to know how to deal with people who are disruptive,” he says. “And particularly anybody who wants to bring any kind of bigoted views into the room.”
As one of the very few Palestinians at the festival, Wardeh says it is “not only my duty” but “an honour to be here and to represent my people”.
He also feels it’s wrong that Rachel Creeger has had her venue cancelled.
“I sincerely support free speech and I think everyone should be able to get on the stage and say what they want, within reason obviously,” says Wardeh.
Rachel says she hopes to confirm a new venue for her show on social media in the coming days.
“We’ve thankfully had a number of venues approach us to say that they have space available, so I’m hopeful that I’ll get – if not a full – then at least part of the run for the show.”
Since arriving in Edinburgh she’s been overwhelmed by how many hugs of support she’s received.
“To have super high-profile comedians put their heads above the parapet to say ‘this is wrong’, it means so much…In a way the story is that someone’s done something very hurtful… But look at all the love, that’s amazing.”
Sami Abu Wardeh’s Palestine: Peace de Resistance is at the Pleasance Dome in Edinburgh until 24 August Andy Parsons’ Please #@!$ Off to Mars is at Pleasance Courtyard’s Cabaret Bar until 10 August Zainab Johnson: Toxically Optimistic is at Pleasance Courtyard until 24 August
Donald Trump’s trade war has been difficult to keep up with, to put it mildly.
For all the threats and bluster of the US election campaign last year to the on-off implementation of trade tariffs – and more threats – since he returned to the White House in January, the president‘s protectionist agenda has been haphazard.
Trading partners, export-focused firms, customs agents and even his own trade team have had a lot on their plates as deadlines were imposed – and then retracted – and the tariff numbers tinkered.
While the UK was the first country to secure a truce of sorts, described as a “deal”, the vast majority of nations have failed to secure any agreement.
Deal or no deal, no country is on better trading terms with the United States than it was when Trump 2.0 began.
Here, we examine what nations and blocs are on the hook for, and the potential consequences, as Mr Trump’s suspended “reciprocal” tariffs prepare to take effect. That will now not happen until 7 August.
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Why was 1 August such an important date?
To understand the present day, we must first wind the clock back to early April.
Then, Mr Trump proudly showed off a board in the White House Rose Garden containing a list of countries and the tariffs they would immediately face in retaliation for the rates they impose on US-made goods. He called it “liberation day”.
The tariff numbers were big and financial markets took fright.
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What does the UK-US trade deal involve?
Just days later, the president announced a 90-day pause in those rates for all countries except China, to allow for negotiations.
The initial deadline of 9 July was then extended again to 1 August. Late on 31 July, Mr Trump signed the executive order but said that the tariff rates would not kick in for seven additional days to allow for the orders to be fully communicated.
Since April, only eight countries or trading blocs have agreed “deals” to limit the reciprocal tariffs and – in some cases – sectoral tariffs already in place.
Who has agreed a deal over the past 120 days?
The UK, Japan, Indonesia, the European Union and South Korea are among the eight to be facing lower rates than had been threatened back in April.
China has not really done a deal but it is no longer facing punitive tariffs above 100%.
Its decision to retaliate against US levies prompted a truce level to be agreed between the pair, pending further talks.
There’s a backlash against the EU over its deal, with many national leaders accusing the European Commission of giving in too easily. A broad 15% rate is to apply, down from the threatened 30%, while the bloc has also committed to US investment and to pay for US-produced natural gas.
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Millions of EU jobs were in firing line
Where does the UK stand?
We’ve already mentioned that the UK was the first to avert the worst of what was threatened.
While a 10% baseline tariff covers the vast majority of the goods we send to the US, aerospace products are exempt.
Our steel sector has not been subjected to Trump’s 50% tariffs and has been facing down a 25% rate. The government announced on Thursday that it would not apply under the terms of a quota system.
UK car exports were on a 25% rate until the end of June when the deal agreed in May took that down to 10% under a similar quota arrangement that exempts the first 100,000 cars from a levy.
Who has not done a deal?
Canada is among the big names facing a 35% baseline tariff rate. That is up from 25% and covers all goods not subject to a US-Mexico-Canada trade agreement that involves rules of origin.
America is its biggest export market and it has long been in Trump’s sights.
Mexico, another country deeply ingrained in the US supply chain, is facing a 30% rate but has been given an extra 90 days to secure a deal.
Brazil is facing a 50% rate. For India, it’s 25%.
What are the consequences?
This is where it all gets a bit woolly – for good reasons.
The trade war is unprecedented in scale, given the global nature of modern business.
It takes time for official statistics to catch up, especially when tariff rates chop and change so much.
Any duties on exports to the United States are a threat to company sales and economic growth alike – in both the US and the rest of the world. Many carmakers, for example, have refused to offer guidance on their outlooks for revenue and profits.
Apple warned on Thursday night that US tariffs would add $1.1bn of costs in the three months to September alone.
Barriers to business are never good but the International Monetary Fund earlier this week raised its forecast for global economic growth this year from 2.8% to 3%.
Some of that increase can be explained by the deals involving major economies, including Japan, the EU and UK.
US growth figures have been skewed by the rush to beat import tariffs but the most recent employment data has signalled a significant slowdown in hiring, with a tick upwards in the jobless rate.
It’s the prospect of another self-inflicted wound.
The elephant in the room is inflation. Countries imposing duties on their imports force the recipient of those goods to foot the additional bill. Do the buyers swallow it or pass it on?
The latest US data contained strong evidence that tariff charges were now making their way down the country’s supply chains, threatening to squeeze American consumers in the months ahead.
It’s why the US central bank has been refusing demands from Mr Trump to cut interest rates. You don’t slow the pace of price rises by making borrowing costs cheaper.
A prolonged period of higher inflation would not go down well with US businesses or voters. It’s why financial markets have followed a recent trend known as TACO, helping stock markets remain at record levels.
The belief is that Trump always chickens out. He may have to back down if inflation takes off.
A 76-year-old man has been charged with child cruelty offences after youngsters fell ill at a summer camp.
Jonathon Ruben is accused of three offences of “wilful ill treatment of a child” relating to three boys.
Police received a report of children feeling unwell at a camp being held at Stathern Lodge, near Melton in Leicestershire, on Sunday.
Officers said paramedics attended the scene and eight boys – aged between eight and 11 – were taken to hospital as a precaution, as was an adult. They have since been discharged.
Ruben will appear at Leicester Magistrates’ Court on Saturday.
A statement from Janine McKinney, chief crown prosecutor for CPS East Midlands, said: “The Crown Prosecution Service has authorised the prosecution of a 76-year-old man with child cruelty offences following a police investigation into a summer camp held at Stathern Lodge, Leicestershire.
“This decision has been made after reviewing a file of evidence from Leicestershire Police.
“Jonathon Ruben, will be charged with three offences of wilful ill-treatment of a child relating to three boys. He will appear at Leicester Magistrates’ Court on Saturday, 1 August.
“This has been an extremely upsetting and shocking moment for the community, and especially for the children and parents most directly affected.”
Leicestershire Police said the owners and operators of Stathern Lodge are separate from the people who use or hire the venue, and are not connected to the incident.
It added in a statement: “This is an active criminal investigation and we ask that people do not speculate further about the incident, particularly on social media platforms.
“Leicestershire Police continues to work closely with partners ensuring that full safeguarding is provided to all those affected.”
The force has referred itself to the Independent Office for Police Conduct over its handling of the incident.