We bring you the latest results from the USA, including Dollar Tree and Publix.
Successful integration of Family Dollar drives sales at Dollar Tree
Following its $9.1 bn acquisition of Family Dollar in 2015, Dollar Tree has reported sales of $5.37 bn in the fourth quarter, with same store sales up 5.6%, its 32nd consecutive quarter of positive growth. Full year sales were up 80.2%, to $15.5 bn, making the retailer North America's leading operator of discount variety stores. Consolidated sales increased 116.7% from $2.48 bn in last year's Q4, as a result of $2.68 bn sales from the Family Dollar segment and a 1.7% increase in same store sales from the Dollar Tree stores.
During Q4, the company opened 128 new stores, expanded or relocated 53 stores, closed 28 and divested of 325 Family Dollar stores. As part of its re-banner initiative, the retailer also opened 58 former Family Dollar stores under the Dollar Tree banner. With no plans to combine the two brands, Bob Sasser, Dollar Tree's CEO says "Our two brands are very complimentary" with Family Dollar typically serving urban, lower income markets and Dollar Tree aimed at suburban, middle income customers.
Dollar Tree building a loyal customer base
With everything in Dollar Tree priced at a dollar, the retailer is appealing to shoppers through its simplicity and commitment to providing great value products. Despite the economic recovery which is underway in the US, many people are looking to stretch their household budgets further.
Publix results: Another successful year
Publix has reported Q4 sales of $8.2 bn, a 4.5% increase on last year, with same store sales up 3.2%. Publix, the largest employee owned supermarket in the country, continues to see strong growth in its latest results. CEO, Ed Crenshaw, attributes the success of the retailer to its associates, with them "continuing to make us a leader in customer service." Publix has seen its full year sales increase 5.9% from 2014, to $32.4 bn, with same store sales up 4.2%. Amid a competitive and financially turbulent time, Publix has continued to please its customers, building strong brand loyalty. Publix, which operates over 1,100 stores, has seen Q4 net earnings increase by 15% compared to the same period last year. Net earnings for the year were up 13.2% to $2.0 bn, its strongest performance yet.