What:  Discounter chain is heavily penalized for increasing theft in store

Why it is important:  Theft starts to be a theme in US press, which suggests that the phenomenon is growing, all the more that investors notice and penalize retailers hit by this wave.

Dollar Tree reported a 44% decline in net income despite strong sales growth, largely due to a shift towards lower-margin essentials and a significant increase in losses from theft, termed as "shrink" in the retail industry. This theft has contributed to the shrinking of gross margins by 3.4 percentage points to 30.5%, leading Dollar Tree to cut its profit forecast for the year.

The company is in the midst of a turnaround, showing positive signs such as increased store traffic, but it needs to address this issue of theft and convince investors about its profit improvement strategy.

Theft and Thrift squeeze Dollar Tree