Surprising Fact
Dollar General’s inventory shrink of $928 million was roughly 84% of its $1.1 billion net income in 2024, underscoring merchandise losses as a headwind on profits.
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Key Background
Dollar General has taken steps in recent years to reduce inventory losses from theft and damages, announcing in 2024 that it would start removing self-checkout stands from hundreds of stores. The retailer said in 2022 that self-checkout could “enhance” convenience for shoppers while allowing staff to “dedicate even more time to serving customers,” as Dollar General tested stores with only self-checkout kiosks. CEO Todd Vasos, who returned from retirement in 2022 before returning less than a year later to lead the retailer’s turnaround, said a decision to cut self-checkout would likely have a “material and positive impact” on shrink. Improvements on shrink improved Dollar General’s profits through 2025: In Q1, the company reported a 31% increase in gross margin, or the percentage of sales a company keeps after paying for the product it sells, citing a reduction in shrink.
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Further Reading
ForbesFast Food Chains—McDonald’s, Taco Bell, Burger King—Win As Low-Income Diners Crack Under Rising Gas PricesBy Alicia Park