Latest news with #NeilSaunders
Daily Mail
11 hours ago
- Business
- Daily Mail
Dollar General's self checkout gamble could spell the end of the machines for good
It may be the end of self-checkouts as we know it after Dollar General's tech gamble paid off. The retailer removed self-checkouts from 12,000 stores nationwide in 2024 - leaving them in only a handful of locations. The company said at the time that it made the move in order to cut rising 'shrink', the retail term for theft. The value store had seen shoplifting soar since installing the tech. Now it seems removing the machines is helping stop theft. The company reported that lower shrink and higher inventory markup were major factors in boosting its income by 8 percent to $392 million in the first quarter of this year, Retail Dive reported. Chief Financial Officer Kelly Dilts said improvement in shrink rates will be a tailwind throughout the year and that 'should be the gift that just keeps on giving.' 'The removal of self-checkout is sensible at Dollar General. The stores are pretty small and don't really need self-checkout,' Neil Saunders, retail expert at GlobalDatatold Other chains may follow in its footsteps, he added, but he does not think it is likely they will disappear entirely from all stores. 'I think some chains will remove self checkout, but we won't see the concept disappear entirely. It still has advantages,' Saunders said. Retailers like Walmart, Costco, and Target have already begun removing self-checkout, mainly to curb theft and revamp stores. In the first quarter of this year Dollar General has opened 156 stores and remodeled 688 locations as part of its Project Elevate, and revamped 599 through so-called Project Renovate. The company continues to operate over 20,000 stores in the US and Mexico, and it finished off this year's first quarter with $10.4 billion in net sales, a 5.3 percent increase from this time last year. 'As we think about gross margin, we are just really pleased with where shrink came in,' chief financial officer Dilts said. CEO Todd J Vasos also praised improvements in layout and merchandising. 'Our store standards are much, much better than they've been in quite a long time, and every single quarter that goes by continues to get better and better,' he said on Tuesday. Walmart also experienced sales increases in its recent quarters, having removed self-checkouts from all Sam's Club stores in favor of AI technology. While Target has removed self-checkout in some locations, a spokesperson told the New York Post that it will not be gone for good. Despite the apparent success of the removal of self-checkout machines, it has not been completely smooth sailing for Dollar General in recent months. Locations were shuttered last year, and Vasos claimed its 49 percent profit drop in last year's fourth quarter was partially due to consumers pulling back on spending. 'Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,' Vasos said as the retailer announced October to December earnings.
Forbes
a day ago
- Business
- Forbes
The Spending Breakdown: Here Are Some Consumer Trends From April
UNITED STATES - CIRCA 1960s: Tired ,frustrated woman in supermarket shopping trolley. On May 15, the Census Bureau released results for April retail sales. These numbers are often useful since they help tell the story about what items and categories consumers are spending on vs. where they are penny pinching. They also convey real-time monthly information related to what consumers prize on the budgetary front. Factors to bear in mind for April as results unfold included the continued potential for tariffs and uncertainty around inflation. Consumers also continue to pay off their holiday spending hangovers, and two major spend events, Easter and spring break occurred toward the second half of the month. Let's take a look. Total sales eked up to $724.1 billion from $723.7 billion the previous month. Neil Saunders, managing director of GlobalData, summed the overall sentiment up succinctly, 'Despite all the chatter, there has not been a significant deterioration in [consumers' willingness to spend]; this may come later in the year if economic conditions deteriorate, but it is not yet present to any large degree.' Chip West, a consumer expert and commentator with RRD, concurred, 'Consumers appeared to show caution, waiting to see how the picture involving trade and supply chains played out,' he wrote in an update. 'Despite economic volatility and supply chain concerns, consumer purchasing power held firm--bolstered by easing inflation, low unemployment, and steady income growth.' When we drill down into the report released by the Census Bureau, we get a better sense of monthly changes in consumer spend by category. In April, nine of 13 categories were flat-to-down. Food services and drinking places were the biggest winners in the month, rising to $99.093 billion from $97.930 billion. 'Consumers were motivated by the various deals and special offers conveyed by restaurants,' wrote Saunders. 'There is an even greater fight for 'share of stomach' today.' Pleasant weather might have also been at play when motivated consumers hit certain shops. Other winners included building materials and garden supplies, which ticked up to $41.363 billion from $41.031 billion, and furniture and home furnishings, which were slightly up at $11.553 billion from $11.519 billion. Non-store retailers remained a big winner this time around, rising to $123.539 billion from $123.321 billion a month prior. This group is often a strong (if not the strongest) performer each month, and includes sales through catalogs, infomercials, and vending machines, according to the Census Bureau. Although restaurants did well, food and beverage stores were flat, declining to $84.383 billion from $84.384 billion, with grocery stores, a subcategory, also declining to $75.890 billion from $75.959 billion. Health and personal care declined to $38.873 billion from $38.949 billion, and general merchandise fell to $76.993 billion from $77.118 billion. Department stores, another subcategory, fell slightly to $3.252 billion from $3.297 billion. Remarking about groceries and pricing, West noted the 12-month inflation rate was at 2.3%, 'its lowest since 2021, which helped the category.' Egg prices, which have been a hot-button headline stealer for some time now, are, 'still up 49% from last year, [but] they dropped 13% in April,' West added. Consumers put off car related expenses in April as well. Motor vehicle parts and dealers slipped some to $141.625 billion from $141.826 billion. Gasoline stations also fell to $51.050 billion from $51.319 billion. Meanwhile, clothing and accessories fell to $25.837 billion from $25.948 billion. May numbers are expected to drop on June 17 before the markets open. With summer just around the corner, tariffs looking as though they'll be on pause for a moment or longer, and plenty of potential spend events ahead, one observation to look out for is whether or not consumers have pulled back significantly enough in May to make a dent. 'Actual impact of tariffs on prices and products has not yet hit the shopper,' Saunders cautioned, adding that the effect rings more like it's depressing consumer confidence. 'Something that is worrying, but is more nebulous in terms of influence on spending,' he wrote.
Daily Mail
a day ago
- Business
- Daily Mail
Spirit Halloween cancels opening event due to supply chain issues
Spirit Halloween has canceled its annual summer opening event following damage from tariffs imposed by President Donald Trump. The seasonal Halloween chain recently confirmed the cancellation on social media and its website. The company's post stated that 'international disruptions and supply chain challenges' interrupted its annual opening plans. Before the cancellation, Spirit Halloween planned to hold the event at its Egg Harbor Township store in New Jersey. The chain hasn't stated where most of its products are manufactured, but UCLA professor Chris Tang told Marketplace that most costumes and accessories are made in China and Mexico. 'The flagship store uses a lot of animatronics and props, and it is likely that these things have become more expensive and more difficult to source because of tariffs,' GlobalData retail expert Neil Saunders (pictured) told 'Spirit Halloween has likely weighed the costs and determined that it's not worth launching the flagship this year.' 'The store is a nice kick-off to the season, but it's not a critical part of the business – here Spirit will be focused on running its thousands of pop-up shops,' Saunders added. Spirit Halloween plans to open over 1,500 stores in mid-August and will host another grand opening event in 2026, it said. Known for its seasonal stores in the late summer and fall, Spirit Halloween has been selling various Halloween goods in North America since 1983. It's been the center of media specials and was the focus of a popular Saturday Night Live sketch last year during the show's 50th season. Spirit Halloween earned $400 million in yearly revenue by 2015, according to Moody's ratings via CNBC.
Daily Mail
2 days ago
- Business
- Daily Mail
Spirit Halloween CANCELS summer opening event as it struggles with tariffs
Spirit Halloween has canceled its annual summer opening event following damage from tariffs imposed by President Donald Trump. The seasonal Halloween chain recently confirmed the cancellation on social media and its website. The company's post stated that 'international disruptions and supply chain challenges' interrupted its annual opening plans. Before the cancellation, Spirit Halloween planned to hold the event at its Egg Harbor Township store in New Jersey. The brand did not reveal tariffs as the exact reason, but the event cancellation came after massive international trade disruption. The issues have also affected the stock market and caused companies to reconsider their business methods. The chain hasn't stated where most of its products are manufactured, but UCLA professor Chris Tang told Marketplace that most costumes and accessories are made in China and Mexico. 'The flagship store uses a lot of animatronics and props, and it is likely that these things have become more expensive and more difficult to source because of tariffs,' GlobalData retail expert Neil Saunders told The chain said 'international disruptions and supply chain challenges' interrupted its annual opening plans 'Spirit Halloween has likely weighed the costs and determined that it's not worth launching the flagship this year.' 'The store is a nice kick-off to the season, but it's not a critical part of the business – here Spirit will be focused on running its thousands of pop-up shops,' Saunders added. Spirit Halloween plans to open over 1,500 stores in mid-August and will host another grand opening event in 2026, it said. Known for its seasonal stores in the late summer and fall, Spirit Halloween has been selling various Halloween goods in North America since 1983. The pop-up store debuted in California and had 60 seasonal stores by 1999. Today, it is the largest Halloween retailer in the US and offers costumes that are appropriate for shoppers of all ages. It's been the center of media specials and was the focus of a popular Saturday Night Live sketch last year during the show's 50th season. Spirit Halloween earned $400 million in yearly revenue by 2015, according to Moody's ratings via CNBC. 'Spirit Halloween has likely weighed the costs and determined that it's not worth launching the flagship this year,' Neil Saunders, managing director of GlobalData, told Combined with sales from its parent company, Spencer's Gifts, the pop-up chain and business owned by Spencer's Gifts brought in $1.86 billion in 2023. Now, the Halloween chain alone makes about $1 billion a year and employs around 50,000 workers. Spirit Halloween has not discussed the effects of tariffs on its revenue, but it plans to remain 'full speed ahead.' has reached out to Spirit Halloween for comment about the event cancellation and the potential issues that could arise from tariffs.
3 days ago
- Business
Dollar General posts record sales as bargain stores attract more anxious over economy
Dollar General set a quarterly sales record of $10.44 billion and upgraded its annual profit and sales outlook as Americans tighten their budgets and spend more at bargain stores and off-price retailers amid economic uncertainty. The U.S. economy shrank at a 0.2% annual pace from January through March, the first drop in three years, as President Donald Trump's trade wars dented spending by businesses. Consumer spending slowed sharply. For the period ended May 2, Dollar General's sales climbed 5% to $10.44 billion from $9.91 billion. That's better than the $10.29 billion that Wall Street was expecting, according to a poll by Zacks Investment Research. Sales at stores open at least a year, a key indicator of a retailer's health, increased 2.4%. Customer traffic dipped 0.3%, but the average transaction amount rose 2.7%. Shares jumped more than 10% before the opening bell Tuesday and shares of rival Dollar Tree, which reports its quarterly performance Wednesday, rose 4%. Dollar General, based in Goodlettsville, Tennessee, earned $391.9 million, or $1.78 per share, in the quarter, blowing past the $1.47 per share that Wall Street had expected, as well as the $363.3 million profit it recorded during the same period last year. Dollar General said that even though it topped its own expectations, there is a lot of uncertainty about how tariffs will impact its business and its customers for the remainder of the year. People are trading down, or visiting bargain chains, as they seek to extend their spending, but lower-income Americans are much more vulnerable. 'While the macro backdrop continues to be broadly unhelpful, with core lower income consumers still facing considerable pressure on their finances, this was mitigated during the quarter by consumers gently stocking up on things in anticipation of tariffs,' Neil Saunders, managing director of GlobalData, said in a statement. The company is now projecting 2025 earnings in a range of about $5.20 to $5.80 per share. Its prior earnings forecast was for approximately $5.10 to $5.80 per share. Analysts surveyed by FactSet are looking for earnings of $5.61 per share. Sales are expected to climb approximately 3.7% to 4.7%. Dollar General previously predicted sales growth of about 3.4% to 4.4%. Same-store sales growth is now expected to be approximately 1.5% to 2.5% up from a prior outlook for about 1.2% to 2.2% growth.
