Dollar Tree considering ‘defensive merchandising’ to manage theft issues

The Dollar Tree may be following in the footsteps of a group of retailers in a fight to prevent store theft.

In a post-earnings call with analysts, Dollar Tree Chief Financial Officer Jeff Davis said the company may be instituting what they call “defensive merchandising” to discourage theft, according to reporting by the U.S. Sun.

On the call, Davis said he defines defensive merchandising as any steps taken to prevent in-store theft.

Target and Walgreens have both said they would take steps towards increasing measures around theft prevention in the coming months.

Walgreens recently opened a store specifically designed to prevent theft, with hardly any shoppable areas on the store floor. The store is located in Chicago’s South Loop, an area that has experienced an uptick in crime. Walgreens has said the store could be a blueprint for other locations.

Davis added that Dollar Tree  headquartered in Chesapeake, Va., is looking into real estate optimization and even higher prices to combat shrink inventory. Target CEO Brian Cornell said recently shrink inventory will cost the retailer over $1 billion this year alone.