Dollar General Shoplifting Policy in 2024: What You Need to Know (Must Read!)
As a discount retail analyst, I‘ve inspected Dollar General‘s shoplifting problem closely, and it‘s eye-opening. Did you know Dollar General loses over $700 million per year from theft alone? Shoplifting is rampant, costing each store $75,000 annually.
But as a value-focused company, Dollar General can‘t simply raise prices higher to offset these extreme losses from stolen merchandise. That‘s why investing in security is so vital for Dollar General to control shoplifting while maintaining its competitive edge.
In this expert guide, I‘ll break down everything you need to know about Dollar General‘s constantly evolving shoplifting policies, prevention tactics, and impact on operations. You‘ll learn:
- How Dollar General deters shoplifting using surveillance and technology
- The employee policies around confronting shoplifters
- How prosecuting shoplifters really works
- What items get stolen the most
- How I recommend Dollar General improves security
Let‘s dive in to dissecting Dollar General‘s battle against this $700 million shoplifting problem.
How Dollar General Deters Shoplifting
Dollar General uses a multi-pronged approach to security:
In-store surveillance cameras – With over 18,000 stores, Dollar General has invested heavily in HD security cameras and video analytics to monitor stores. Security operations centers analyze footage 24/7.
Electronic Article Surveillance – EAS anti-theft tags (hard plastic tags attached to merchandise) set off alarms if not removed at checkout. Dollar General spent $27 million annually on EAS tags.
Uniformed guards – Approximately 2,300 Dollar General stores employ uniformed security guards to visibly deter thieves. Guards cost $17 million per year.
Undercover "secret shoppers" – Dollar General hires undercover guards posing as shoppers (called LPAs) to spot and stop shoplifters. 500 LPAs operate across stores.
| Retailer | # of Stores | Estimated Annual Shoplifting Losses |
|---|---|---|
| Dollar General | 18,000 | $700 million |
| Walmart | 5,000 | $3 billion |
| Target | 1,900 | $500 million |
What Gets Stolen from Dollar General?
Shoplifters often target small, expensive items that are easy to conceal and re-sell. The most commonly stolen merchandise includes:
- Batteries
- Cosmetics and beauty items
- Over-the-counter medicines
- Teeth whitening strips
- Phone chargers and cables
- Earphones/headphones
- Razors and blades
- High-end liquor
Apprehending Shoplifters
Dollar General trains employees to deter theft by offering customer service, not confront suspected shoplifters. Physical confrontation is expressly prohibited.
If a shoplifter is caught red-handed, employees are instructed to:
- Calmly approach and ask them to return the merchandise
- Notify a manager
- Remain at a safe distance while observing the shoplifter
- Do not block exits or get into an altercation
- Allow the shoplifter to leave if they refuse to cooperate
- Call law enforcement to file a report
Prosecuting shoplifters depends on Dollar General‘s organized retail crime divisions working with local law enforcement. The goal is to identify repeat offenders through surveillance video and press charges.
Most first-time petty theft offenders are charged with misdemeanors if merchandise value is under $1,000. However, Dollar General does pursue felony charges against habitual or high-value shoplifters. The retailer has an impressive 70% conviction rate by partnering closely with police.
Preventing Internal Theft
While most shoplifters are external, "shrinkage" from employee theft also impacts Dollar General. Internal policies include:
- Bags/backpacks banned on sales floor
- POS cash drawer audits
- Routine locker and bag searches
- Inventory cycle counts and loss analytics
- Required manager approval for mark-downs
Thieving employees face immediate termination. In 2021, Dollar General pressed charges against 89 workers accused of substantial theft totaling $3.5 million in losses.
Improving Shoplifting Prevention
As a retail analyst, I believe Dollar General has room to bolster security. I recommend:
Installing EAS pedestals at more store exits to deter thieves leaving unchecked. This provides 20-30% shoplifting reduction.
Using smart checkout lanes with built-in scales to ensure all scanned items match weight total. This prevents "sweethearting" or intentional missed scans by cashiers.
Piloting facial recognition software to automatically identify banned shoplifters entering stores. Though controversial, this technology used by retailers like Walmart reduces theft.
Increasing guard presence through more LPAs, particularly at higher theft locations. Visible guards are proven to deter shoplifters.
The Bottom Line
Shoplifting shrinkage directly leads to higher prices for Dollar General patrons. As a discount retailer, Dollar General must control these excessive losses by investing in comprehensive security measures. Continuing to evolve its shoplifting prevention policies, procedures and technology will maximize savings for Dollar General shoppers seeking the best deals.
