Dollar General Gets Rid Of Self-Checkout Lanes In 12,000 Stores
June 7, 2024
‘Shrink continues to be the most significant headwind in our business, and we are deploying an end-to-end approach to shrink reduction across the organization’
Discount chain Dollar General recently adjusted how consumers can check out their groceries from their store. The store has removed the self-checkout lane from approximately 12,000 stores since the beginning of the year, according to Retail TouchPoints.
The company said there would still be some self-checkouts, stating that a “limited number of stores, most of which are higher volume and low-shrink locations,” the CEO of Dollar General, Todd Vasos, stated on a recent earnings call in May.
The primary reason for the move is due to “shrink.” CNBC describes retail shrink as “employee theft, shoplifting, administrative or cashier error, damage or vendor fraud.” Many of the bigger retail giants, such as Walmart and Target have been reducing self-checkout lanes in their stores as well.
“Shrink continues to be the most significant headwind in our business, and we are deploying an end-to-end approach to shrink reduction across the organization, including efforts in our supply chain, merchandising, and within our stores,” said Vasos.
Fox Business reported that the move helped them crack down on retail theft, which has been the most problematic issue for the business. Dollar General stated it also intends to remove merchandise that is often stolen. They previously announced that the self-checkout registers would be converted to assisted-checkout options in about 9,000 stores.
Dollar General is also focused on reducing turnover among store managers, which has been a problem in recent years, according to Retail TouchPoints.
“While we still have work to do, we are seeing year-over-year reductions in turnover at all levels within our retail operations, including regional director, district manager, store manager, assistant store manager, and sales associate,” said Vasos. “We are proud of this progress and excited to see our actions resonating with our team in the field.”
For the first quarter of 2024, Dollar General saw a 6.1% increase compared to last year, when net sales reached $9.9 billion.
