Reprinted with permission from Ryan Farmer. Also available in Gemini.

Yahoo Finance: People Are Stealing From the Cheap Dollar Store Because They’re Richer Than They Think They Are. The Gaslight Continues…

I’d like to share with you some more Mainstream Media Bullshit I wandered into that I was getting at in my previous posts today.

In the first article, Bank of America says Americans have tons of money in the bank and they just think they’re broke because the savings aren’t as high as they were during the illegal “lockdown”.

In the second and third articles, retail stores, including Dollar Tree (where some items are apparently $1.25 and $1.50 now), are experiencing massive theft, and are locking items up.

Apparently, you must lock things that cost $1, $1.25, and $1.50 to protect them from the people who are “richer than they think they are”.

“Consumers are richer than they think they are, says Bank of America. They just need to stop comparing their savings to those during lockdown.“

U.S. consumers could be forgiven for thinking they’ve rarely been more strapped for cash than in 2023: Inflation is still high, the Fed has hiked up rates, and fiscal support from the government is beginning to run dry.

However, Bank of America’s analysis paints a different picture, highlighting robust spending growth and relatively high household deposits compared with 2019.

The resilience of consumer spending has surprised economists and may have even caused a headache for the Fed—which, in a bid to wrestle down inflation, has had to push consumers to the “point of pain” with the highest rate levels in more than a decade.

However, signs of a spending slowdown are emerging, with Deloitte forecasting a drop in growth from 2.8% in 2022 to 1.9% this year. Bank of America suggests this slowdown might be linked to the public’s perception that their financial situation has deteriorated somewhat during 2022–23.

“How ‘shrink’ became the biggest story in retail.“

Retail theft, or “shrink,” as business executives put it, has run wild.

In waves of earnings calls, references to shrink resemble the retail industry’s upside-down version of mentioning AI. But instead of generating hype, citing shrink softens the blow of sinking profits.

[…]

The theme of missing merchandise also featured in recent calls from Dollar Tree (DLTR), Macy’s (M), Home Depot (HD), and Target (TGT).

“Nobody wants to come out and say, ‘We are not in control,'” said David Johnston, NRF vice president of asset protection and retail operations. “To see the number of CEOs coming out and talking about shrink and loss — it’s an issue.”

Dollar Tree, for instance, told investors it is installing locked cases on more items and even taking some SKUs out of stores in response to elevated theft. “We are now taking a very defensive approach to shrink,” Dollar Tree CEO Rick Dreiling told analysts this week.

“Dollar Tree adding locked cases, removing items from stores amid rising theft costs.“

“We are now taking a very defensive approach to shrink,” Rick Dreiling, CEO of Dollar Tree, said during the earnings call. “I do not see any trouble to getting to more realistic margin levels.”

In response, the company plans to introduce anti-theft initiatives including moving certain items behind the checkout stand and removing some SKUs altogether.

You’re richer than you think you are. Now quit stealing from the damn dollar store!

The KrugmanBot3000 will have you know there is a “Biden Economic Miracle” going on.

“I stole Tide from the Dollar Tree today. Now I can do two loads of laundry!” – Very successful country.

“We’re locking up the toothpaste.” -Very Robust Economy.

“And the baby formula.” -Totally not a failing country at all. ⬆