Third quarter key numbers
- Dollar Tree’s consolidated net sales increased 7.5% to $6.2bn, with enterprise same-store sales up 5.1%
- Same-store sales for the Family Dollar banner increased 6.4%, while Dollar Tree same-store sales increased 4.0%
- Operating income increased 9.9% to $465.5m
Customers shopping events and holidays early
Dollar Tree saw a strong performance across most categories, with crafts, party celebrations, household products, and kitchenware leading growth. The new Crafter’s Square range is performing ahead of expectations and will be extended across the portfolio in early 2021. This reflects how consumers are spending more time at home during the pandemic. Halloween was also strong, with customers shopping early for events and the holidays. This is helping to drive sell-through and reduce markdowns.
Source: IGD Research
Renovating 1,250 Family Dollar stores in 2021
The retailer continues to push ahead with its programme of new store openings, renovations, re-bannering and closings. The combination of Dollar Tree and Family Dollar provides the company with more opportunities to better serve its customers in more ways and in more locations. Family Dollar stores in the H2 programme, continue to outperform non-renovated stores by 10%, with customers responding positively to the addition of new categories and introduction of new price points. With 2,240 Family Dollar stores converted to the H2 format, a further 1,250 will be renovated in 2021.
Multi price-points initiative
The retailer also plans to expand its Dollar Tree Plus! multi price-point initiative to 500 stores next year. Last year, it started testing multi-price assortments in more than 100 stores in southwestern markets. Following adjustments to the product mix, to focus primarily on discretionary items to limit sales cannibalisation, changing display elements and signage, and focusing on the $1, $3 and $5 price-points, the programme is ready for roll-out. Products at $3 and $5 price points will also be introduced into selected Family Dollar stores.
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