(NewsNation) — Theft continues to plague Greenback Tree Inc. and its Household Greenback chain, a persistent concern that has solely worsened amid plans to shutter lots of of underperforming places, the corporate stated Wednesday.
Throughout an earnings name, Greenback Tree executives revealed the low cost retailer’s efforts to put in extra safety instances and rent extra guards have didn’t curb the rampant shoplifting that has lengthy vexed greenback shops.
Almost 1,000 Household Greenback and Greenback Tree places are set to shut over the subsequent a number of years, an announcement that stands to disproportionately affect communities the place low cost shops have pushed out native grocers.
Greenback Tree Inc. didn’t instantly reply to NewsNation’s request for touch upon how the closures would possibly affect so-called “meals deserts,” the place grocery choices have dwindled resulting from aggressive low cost retailer pricing.
The variety of unbiased grocers considerably declines when new greenback shops enter a neighborhood, in keeping with analysis from the College of Toronto and the College of California, Los Angeles. The affect is the same as the lack of about one grocery retailer for each three greenback shops inside a 2-mile radius.
When communities lose grocery shops in change for greenback shops, customers purchase about 4 to 7% much less recent produce. The examine means that that decline is considerably steeper for low-income households.
Greenback Tree started locking up extra objects and stationing employees close to retailer entrances final 12 months after reporting its monetary efficiency was being battered by extreme “shrink,” retail jargon for theft and different stock loss. However these measures proved inadequate.
Rampant theft isn’t restricted to Greenback Tree. In Wisconsin, a gaggle of Greenback Normal staff walked off the job to protest rising ranges of shoplifting and lack of security measures.
NewsNation’s Katie Smith contributed to this report.
