The value retailer is going full speed ahead with two new store initiatives as it explains its new store initiatives.
Thee discount retailer will expand its Dollar Tree Plus initiative, which adds a multi-price merchandise that exceeds Dollar Tree’s $1 price point and is currently in place in about 340 stores. It expects to have the assortment in place in 500 stores by year-end, expanding it to an additional 1,500 stores in fiscal 2022.
“Our aim to have at least 5,000 Dollar Tree Plus stores by the end of 2024,” stated Michael Witynski, President and CEO, Dollar Tree. “Many of our new stores will be opened as Dollar Tree Plus stores.”
On average, stores with Dollar Tree Plus are experiencing overall sales lift of approximately six per cent, the company said, with a similar lift to gross profit, improved cash contribution of approximately 13%, and a payback on the investment of less than one year.
In March 2021, the retailer announced its newest store format, the combo store, which leverages the strengths of both banners under one roof. The company currently has 105 combo stores operating and sees an opportunity for up to 3,000 combo Stores in rural markets alone. More than 85 per cent of new Family Dollar locations in fiscal 2022 will be combo stores.
