Connect with us

Published

on

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

Continue Reading

Business

Thames Water faces investigation over late delivery of environmental schemes

Published

on

By

Thames Water faces investigation over late delivery of environmental schemes

Thames Water is being investigated over late delivery of environmental improvement schemes, the industry regulator has announced.

Ofwat said the enforcement case against the company, currently fighting to secure its financial future amid a £19bn debt pile, aimed to determine whether it had breached its legal obligations.

The watchdog said that Thames Water itself had been in contact to alert it and the Environment Agency that it will be unlikely to deliver more than 100 of 812 improvements it had promised by a 31 March deadline.

Money latest: Scrapping cash ISAs would be a ‘big mistake’

The schemes fall under the Water Industry National Environmental Programme (WINEP) during the current 2020-2025 pricing period.

That concludes at the end of March when Thames customers face inflation-busting increases to bills over the next five years from April to pay for further infrastructure improvements, which include widespread storm overflow upgrades to prevent sewage spills.

Lynn Parker, Ofwat’s senior director for enforcement, said: “Customers have paid for Thames Water to carry out these essential environmental schemes.

“We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations.

“If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.”

The regulator ultimately has the power to fine the relevant part of the business up to 10% of its annual turnover.

Previous, and recent, penalties paid by Thames include an £18m fine in December for breaking shareholder payout rules while it was also slapped with a £104m bill last summer for sewage failings.

Please use Chrome browser for a more accessible video player

Water bills ‘an absolute disgrace’

Thames Water is grappling with pressure over improvements to its day-to-day operations while scrambling to secure its financial future.

It has previously warned it will run out of money next month, raising the prospect of the utility entering a special administration regime, unless new financing and new equity are secured.

The company’s preferred rescue plan is currently hanging in the balance due to a High Court fight between bondholders.

Thames is also yet to confirm whether it will appeal Ofwat’s final ruling on how much it is allowed to raise bills during 2025-30.

The average water and wastewater bill across England and Wales is set to go up from £480 to £603 during 2025/26 alone – an increase of about £10 a month.

Thames Water’s 16 million customers face a 31% hike to £639 – a rise of £151.

It had sought an increase above 50% across the pricing period.

Read more from Sky News:
Heathrow set to announce multibillion-pound investment
‘Big opportunity’ for Chinese electric carmakers in UK

A Thames Water spokesperson said of the investigation: “We note Ofwat’s decision to open an enforcement case into the delayed delivery of WINEP7 and will cooperate fully.

“Customers will not pay twice for investment that has already been funded through customer bills.

“We’ve been very open about the challenges of delivering all the elements of our WINEP 7 programme, which has been impacted by cost increases that are higher than the inflation index applied to our allowances. We informed Ofwat of this in August 2023.

“We remain committed to delivering all our WINEP commitments.”

Continue Reading

UK

Police arrest man over alleged firearm possession and bomb hoax after ‘challenging’ operation in Sheffield

Published

on

By

Police arrest man over alleged firearm possession and bomb hoax after 'challenging' operation in Sheffield

Police have made an arrest after a man barricaded in a flat in Sheffield allegedly had weapons.

Officers were first called to a block of flats in Broad Street at around 7pm on Monday to deal with a man said to be “a risk to himself”.

Residents were evacuated and spent Monday night at a sports centre, while nearby main roads were closed.

Those roads, including Sheffield Parkway – one of the main roads from the centre to the M1 motorway – have now been reopened and public transport has resumed as police reduced their cordon overnight on Tuesday, into Wednesday.

Read more from Sky News:
Post-mortem reveals injuries of couple found dead in France
Labour suspends 11 councillors over WhatsApp scandal

But the building remains closed and residents are still evacuated and unable to return to their properties.

A statement from South Yorkshire Police on Wednesday said: “On Monday, just after 7pm, we responded to concerns for a man inside a property on Broad Street, alleged to have weapons and pose a risk to himself.

“Today, a 47-year-old man has been arrested on suspicion of affray, criminal damage, possession of a firearm, threats to kill and communicate with a bomb hoax. He remains in police custody at this time.

“We would like to thank those who have been affected for their continued support while emergency services conduct their work. Your support is greatly appreciated.

“A further update will be provided when the building is reopened.”

The force previously described the operation as “challenging”.

The Sheffield Star reported that thousands of commuters were affected by road closures on Tuesday morning, with some spending three hours trying to get to work.

Continue Reading

Science

1,300-Year-Old Gold Hoard Found Near Dutch Village Hints at Pagan Rituals

Published

on

By

1,300-Year-Old Gold Hoard Found Near Dutch Village Hints at Pagan Rituals

A significant discovery has been made near the Dutch village of Hezingen, where a 1,300-year-old hoard of gold and silver has been unearthed. The site, located approximately 130 kilometers east of Amsterdam, is believed to have been used for pagan rituals. The artifacts include more than 100 gold and silver coins, jewelry and other valuables, indicating the presence of a religious offering site. The term “devil’s money” was used by Christian missionaries at the time to condemn such practices, as per reports. Researchers believe the site may have been a place of worship in response to the growing influence of Christianity in the region.

Findings Indicate Pagan Ritual Practices

According to the study published in Medieval Archaeology, the discovery comprises multiple deposits of gold and silver, suggesting repeated offerings over time. The coins originate from various Frankish mints, dating back to the first half of the seventh century. Some jewelry pieces exhibit Germanic animal-style motifs, while others reflect Roman influences. The presence of large silver and gold fragments, possibly used as currency by weight, further indicates the site’s significance. Geochemical analysis has also revealed traces of decayed bones, suggesting that animal sacrifices may have taken place alongside these offerings.

Historical Context and Archaeological Evidence

Jan-Willem de Kort, archaeologist at the Cultural Heritage Agency of the Netherlands and lead author of the study, stated to Live Science that the site was within an area traditionally linked to Saxon communities, although the term “Saxons” may have been a broad classification used by outsiders. The region was once near the Lower German Limes, a former boundary of the Roman Empire before its decline in the fifth century. Some local inhabitants may have served in the Roman auxiliary forces, but by the sixth and seventh centuries, the site appears to have been dedicated to pagan rituals.

Architectural Features and Ritual Significance

During excavations, a line of 14 postholes aligned with the east-west axis was identified. Some of the metal artifacts were found in these postholes, suggesting that they may have once held wooden posts used in rituals. De Kort suggested that the central posts could have supported a “holy pillar,” a feature referenced in early Christian texts as an element of pagan worship. The alignment of these structures with the equinoxes indicates a possible connection to agricultural cycles, where offerings might have been made to ensure fertility and a successful harvest.

Christian Influence and Suppression of Pagan Practices

Historical records indicate that early Christian missionaries opposed these rituals. A ninth-century Saxon baptismal promise explicitly required converts to renounce “diobolgeldæ,” or “devil’s gold.” This aligns with efforts by Christian rulers, such as Charlemagne, to eradicate pagan customs in the region. The persistence of such offerings despite these efforts suggests that some communities continued their traditional practices in defiance of Christian influence.

Cultural Significance of the Discovery

The artifacts provide valuable insights into the religious landscape of early medieval Europe. The hoard not only reflects the material wealth of the time but also highlights the resistance of local communities to the Christianisation process. The site near Hezingen represents one of the most well-preserved examples of pagan ritual practices from this period, offering a glimpse into the region’s complex cultural and religious history. Further analysis of the artifacts and site may provide deeper understanding of the transition from pagan traditions to Christian dominance in medieval Europe.

Continue Reading

Trending