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Dollar Tree

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Dollar Tree, Inc.
Dollar Tree
Formerly
  • Only $1.00
  • Dollar Tree Stores, Inc.
Company typePublic
IndustryRetail, variety, discount
Predecessors
  • K&K 5&10 (1953–1986)
  • Only $1.00 (1986–1993)
Founded1953; 71 years ago (1953)
April 17, 1986
Sumter, South Carolina, U.S.
Headquarters
Chesapeake, Virginia
,
U.S.
Number of locations
15,288 (February 2020) [1]
Areas served
United States
Canada
Key people
Rick Dreiling[2] (CEO)
ProductsFood and snacks, health and beauty care products, housewares, books and toys
RevenueIncrease US$25.509 billion (Fiscal Year Ended January 30, 2021)[3]
Increase US$1.887 billion (Fiscal Year Ended January 30, 2021)[3]
Increase US$1.341 billion (Fiscal Year Ended January 30, 2021)[3]
Total assetsIncrease US$20.696 billion (Fiscal Year Ended January 30, 2021)[3]
Total equityIncrease US$7.285 billion (Fiscal Year Ended January 30, 2021)[3]
Number of employees
193,100 [1]
DivisionsDollar Tree Canada
SubsidiariesFamily Dollar; 99 Cent Stores
Websitedollartree.com
Dollar Tree stores in the U.S., as of December 2020 [4]

Dollar Tree, Inc. is an American multi-price-point chain of discount variety stores. Headquartered in Chesapeake, Virginia, it is a Fortune 500 (sometimes referred to as Fortune 200) company and operates 15,115 stores throughout the 48 contiguous U.S. states and Canada.[1] Its stores are supported by a nationwide logistics network of 24 distribution centers. Additionally, the company operates stores under the name of Dollar Bills, as well as a multi-price-point variety chain under the Family Dollar banner.

Dollar Tree competes in the dollar store and low-end retail markets. Each Dollar Tree stocks a variety of products, including national, regional, and private-label brands. Departments found in a Dollar Tree store include health and beauty, food and snacks, party, seasonal décor, housewares, glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft supplies, teaching supplies, automotive, electronics, pet supplies, and books. Most Dollar Tree stores also sell frozen foods and dairy items such as milk, eggs, pizza, ice cream, frozen dinners, and pre-made baked goods. In August 2012, the company began accepting manufacturer coupons at all of its store locations.[5]

Most of their stores are located in the South and Northeast, but they can be found scattered across all regions of the United States.

History

Early years

In 1953, K. R. Perry[6] opened a Ben Franklin variety store in Norfolk, Virginia, which later became known as K&K 5&10.

In 1970, K. R. Perry, Doug Perry, and Macon Brock started K&K Toys in Norfolk, Virginia. This mall concept grew to over 130 stores on the East Coast.[6]

In 1986, Doug Perry, Macon Brock, and Ray Compton started another chain store called Only $1.00 with five stores, one in Georgia, one in Tennessee, and three in Virginia. The expansion of dollar stores was continued alongside K&K Toys stores, mostly in enclosed malls.[6]

On April 27, 1989, the first “Dollar Tree”-branded store opened at the Jessamine Mall in Sumter, South Carolina.[7] In a May 1989 advertisement in the Sun-News, the fledgling chain, apparently already planning 100 stores for the eastern United States, bills the dollar-pricing model as the “hottest new shopping concept in America”.[8]

1990s

In 1991, the corporation made a decision to focus exclusively on the expansion of dollar stores after selling K&K stores to KB Toys, owned by Melville Corporation.[6]

In 1993, the name Only $1.00 was changed to Dollar Tree Stores to address what could be a multi-price-point strategy in the future, and part equity interest was sold to SKM partners, a private equity firm.[6]

Brock and the co-founders of Dollar Tree got the idea for the company from another retailer known as Everything's A Dollar, which went bankrupt in the 1990s.[9]

On March 6, 1995, Dollar Tree, Inc. went public on the NASDAQ exchange at $15 a share, with a market cap then calculated at $225 million.[citation needed]

In 1996, Dollar Tree acquired Dollar Bill$, Inc., a Chicago-based chain of 136 stores.

In 1997, the company opened its first distribution center and its new store support center, both located in Chesapeake, Virginia.

In 1998, Dollar Tree acquired 98-Cent Clearance Centers in California.[citation needed]

In 1999, Dollar Tree acquired Only $One stores based in New York.[10] That same year, the company opened its second distribution center in Olive Branch, Mississippi.

2000s

This Dollar Tree store in Northwood, Ohio is one of the few stores that continues to use the defunct Super Dollar Tree banner.

In 2000, Dollar Tree acquired Dollar Express, a Philadelphia-based company, and also built a new distribution center in Stockton, California.[11][12] In 2001, the company opened two additional distribution centers, in Savannah, Georgia, and Briar Creek, Pennsylvania.[13][14] In 2003, Dollar Tree acquired Salt Lake City, Utah-based Greenbacks, Inc., and opened a new distribution center in Marietta, Oklahoma.[15][16]

In 2004, Dollar Tree opened its first store in North Dakota which marked its operation of stores in all 48 contiguous states. The company also opened new distribution centers in Joliet, Illinois, and Ridgefield, Washington.[17][18]

In 2006, Dollar Tree celebrated its 20th year of retailing at a $1.00 price point, opened its 3,000th store, and acquired 138 DEAL$ stores, previously owned by SUPERVALU INC.[19]

In 2007, Dollar Tree expanded its Briar Creek Distribution Center and crossed the $4 billion sales threshold.[20] In 2008, Dollar Tree earned a place in the Fortune 500. By the close of 2009, the company opened a store in Washington, D.C., and purchased a new distribution center in San Bernardino, California.[21]

In 2009, Dollar Tree redesigned its website with a new e-commerce platform. DollarTree.com sells Dollar Tree merchandise in larger quantities to individuals, small businesses, and organizations. The company also advertises in-store events, specials, seasonal promotions, and featured products through the site, and users can locate a retail store, research information about Dollar Tree, and view product recalls. Dollar Tree also added customer ratings and reviews, and customer stories to the site.

2010s

Interior of a Dollar Tree in Gillette, Wyoming

In 2010, the corporation opened its 4,000th chain store and acquired 86 Canadian Dollar Giant stores which are based in Vancouver, British Columbia, Canada. The stores are operated in British Columbia, Alberta, Saskatchewan and Ontario. These are the first retail locations outside of the United States operated by Dollar Tree.

In 2011, Dollar Tree achieved total sales of $6.63 billion, opened 278 new stores, and completed a 400,000 square feet (37,000 m2) expansion of its distribution center in Savannah, Georgia.

In 2012, Dollar Tree opened another 345 new stores and exceeded $7 billion in sales, with an end-of-the-year market cap at $9.13 billion.

On July 28, 2014, Dollar Tree announced that it was offering $9.2 billion for the purchase of competitor chain store Family Dollar. On August 18, 2014, Dollar General lodged a competing bid of $9.7 billion for Family Dollar.[22] The bid was rejected on August 20, 2014, by the Family Dollar board, which said it would proceed with the deal with Dollar Tree.[23]

In January 2015, Dollar Tree announced plans to divest 300 stores in order to appease US regulators scrutinizing its proposed takeover of Family Dollar stores.[24]

In June 2015, the firm agreed to sell 330 stores to private equity company Sycamore Partners as part of the approval process for its $8.5 billion takeover of Family Dollar.[25]

The company was ranked 134 on the 2018 Fortune 500 list of the United States corporations by revenue.[26]

In March 2019, as part of its reposition plan, Dollar Tree announced that it will close up to 390 Family Dollar stores along with renovating 1,000 other locations.[27]

2020s

Exterior of a store in Hillsboro, Oregon

On March 3, 2021, it was announced that Dollar Tree had quietly introduced a combination Family Dollar/Dollar Tree store concept, with the first one opening in early 2021.[28] Dollar Tree has opened and operated nearly 50 locations by the end of 2020, primarily in small towns with populations of just a few thousand people.[29]

On September 28, 2021, CEO Michael Witynski, citing increased shipping and labor costs squeezing profit margins, announced that some prices will be rising above $1, possibly to as much as $1.50.[30]

On November 23, 2021, it was announced that Dollar Tree plans to raise its prices from a dollar for typical items to $1.25 in response to inflation and pressure from investors to raise prices. Some of the items sold at Dollar Tree will not have their prices increased. The retailer will introduce the new price point in more than 2,000 stores by December 2021 and complete the roll-out across most of its 8,000 stores by the first quarter of 2022.[31]

On March 13, 2024, Dollar Tree reported a loss of $1.71 billion for latest quarter and announced the closure of near 1,000 stores.[32]

On May 29, 2024, the Dollar Tree announced that they have acquired the 99 cent stores; a company that was going bankrupt. The Dollar Tree took 170/171 stores that the 99 Cent Stores owned.

Business strategy

Dollar Tree is classified as an extreme discount store.[33] It claims to be able to achieve this because their buyers "work extremely hard to find the best bargains out there", and it has "great control over the tremendous buying power at the dollar price-point".[34] Its prices are primarily designed to attract financially disadvantaged customers, but it has also become popular within immigrant communities.[33]

Family Dollar bidding

On July 28, 2014, Dollar Tree announced that a deal had been reached and approved by both parties to purchase Family Dollar for $8.5 billion plus acquisition of the $1 billion in debt currently held by Family Dollar.[35][36][37] The deal came in the month following activist investor and major shareholder[38] Carl Icahn's demand that Family Dollar be promptly put up for sale.[39] After their reported deal had been struck, Dollar General entered the bidding, surpassing Dollar Tree's offer, with a $9.7 billion bid on August 18, 2014.[40] On August 20, 2014, Family Dollar rejected the Dollar General bid, saying it was not a matter of price, but concerns over antitrust issues that had convinced the company and its advisers that the deal could not be concluded on the terms proposed. The Family Dollar board had been analyzing potential antitrust issues that could arise from doing a deal with Dollar General, since the start of the year a statement from CEO Howard Levine outlined.[23]

Canada

Dollar Tree Stores Canada, Inc.
FormerlyDollar Giant (2001–2010)
Company typeSubsidiary
IndustryRetail
Founded2001; 23 years ago (2001), in Vancouver, British Columbia, Canada
FounderJoseph Calvano (co-founder)
HeadquartersBurnaby, British Columbia, Canada
Number of locations
227
Area served
Canada
Key people
Neil Curran (president)
Revenue28,331,700,000 United States dollar (2022) Edit this on Wikidata
2,236,300,000 United States dollar (2022) Edit this on Wikidata
1,615,400,000 United States dollar (2022) Edit this on Wikidata
ParentDollar Tree (2010–present)
Websitewww.dollartreecanada.com

On October 11, 2010, Dollar Tree announced its acquisition of Dollar Giant, incorporated in 2001 in Vancouver, Canada, for $52 million.[41][42] At the time of the acquisition, Dollar Giant had about 85 retail outlets in the provinces of British Columbia, Alberta, Saskatchewan and Ontario.[43] Approximately 30 of its retail locations are in British Columbia, making it the second largest dollar store chain in that province. It was Canada's fourth largest operator of dollar stores. Dollar Tree has since rebranded all of its Dollar Giant stores to Dollar Tree; these were the first retail locations outside of the United States operated by Dollar Tree.

As of 2020, the company operates 227 stores across Canada, concentrated in Western Canada and Ontario. All Dollar Tree stores in Canada sell items for C$1.50 or mentioned otherwise which is usually less than C$2.[44]

Dollar Tree Canada's merchandising team is located in Mississauga, Ontario, while its corporate office remains in Burnaby in Greater Vancouver.[45]

Recalls

The Consumer Product Safety Commission lists several recalls for products sold at Dollar Tree stores. The recalled products include salsa jars with broken glass inside them, hot-melt mini glue guns (recalled in January 2008) which could short circuit and cause burns,[46] and candle sets (recalled in February 2004) that could produce excessive flame.[47]

References

  1. ^ a b c "Dollar Tree, Inc. 2017 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. March 2018. Archived from the original on January 24, 2021. Retrieved April 5, 2018.
  2. ^ "Dollar Tree CEO resigning; former Dollar General CEO to replace him". January 24, 2023. Archived from the original on March 24, 2023. Retrieved March 24, 2023.
  3. ^ a b c d e "Dollar Tree, Inc. 2021 Annual Report". www.dollartreeinfo.com. January 30, 2021. Archived from the original on November 24, 2021. Retrieved November 25, 2021.
  4. ^ "Dollar Tree Locations". Archived from the original on January 16, 2021. Retrieved December 25, 2020.
  5. ^ Shapiro, Carolyn (August 22, 2012). "Dollar Tree plans to start accepting coupons Sunday". pilotonline.com. Archived from the original on July 10, 2021. Retrieved November 25, 2021.
  6. ^ a b c d e "Dollar Tree, Inc.: History". Dollartree.com. Archived from the original on April 2, 2014. Retrieved April 15, 2014.
  7. ^ "The Item 30 Apr 1989, page 44". Retrieved August 1, 2022.
  8. ^ "Sun-News 21 May 1989, page 59". Retrieved August 1, 2022.
  9. ^ Hagerty, James R. (December 22, 2017). "Macon Brock, Dollar Tree Founder, Searched the World for Bargains". The Wall Street Journal. Archived from the original on October 8, 2019. Retrieved October 8, 2019.
  10. ^ Ment, Jonathan (February 28, 2002). "Dollar Tree to open Ulster Avenue branch soon". Daily Freeman. Archived from the original on June 14, 2020. Retrieved May 13, 2020.
  11. ^ "Dollar Tree Stores, Inc. Completes Acquisition of Dollar Express, Inc" (Press release). Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  12. ^ "Dollar Tree Distribution Center". www.dollartree.com. Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  13. ^ "Shipments soaring in Savannah". American City Business Journals. Archived from the original on February 9, 2004. Retrieved November 25, 2021.
  14. ^ "Commission File No.0-25464 Dollar Tree Stores, Inc" (PDF). U.S. Securities and Exchange Commission. p. 8. Archived (PDF) from the original on November 25, 2021. Retrieved November 25, 2021.
  15. ^ "Dollar Tree Signs Binding Agreement to Acquire Greenbacks" (Press release). Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  16. ^ "Dollar Tree Distribution Center". www.dollartree.com. Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  17. ^ "Dollar Tree Distribution Center". www.dollartree.com. Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  18. ^ "Dollar Tree Distribution Center". www.dollartree.com. Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  19. ^ "Dollar Tree Completes Acquisition of Deal$ Stores" (Press release). Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  20. ^ "Dollar Tree Case Study". dokumen.tips. Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  21. ^ "Dollar Tree Distribution Center". www.dollartree.com. Archived from the original on November 25, 2021. Retrieved November 25, 2021.
  22. ^ "Race to buy Family Dollar heats up with Dollar General hiking bid to $8.95 bn". Business Sun. August 18, 2014. Archived from the original on August 21, 2014. Retrieved August 19, 2014.
  23. ^ a b "Family Dollar rejects $9.7 bn acquisition bid by Dollar General". Charlotte News.Net. August 21, 2014. Archived from the original on March 6, 2016. Retrieved August 22, 2014.
  24. ^ "Dollar Tree expects to shed less than 300 stores to buy Family Dollar". Reuters. January 12, 2015. Archived from the original on January 24, 2015. Retrieved July 1, 2017.
  25. ^ "Dollar Tree to sell 330 Family Dollar stores to Sycamore Partners, Reuters, 29 May 2015". Reuters. May 29, 2015. Archived from the original on March 3, 2016. Retrieved August 17, 2019.
  26. ^ "Dollar Tree". Fortune. Archived from the original on June 3, 2019. Retrieved November 18, 2018.
  27. ^ Bursztynsky, Jessica (March 6, 2019). "Dollar Tree to close up to 390 Family Dollar stores this year". CNBC. Archived from the original on March 11, 2019. Retrieved March 11, 2019.
  28. ^ Pierceall, Kimberly (March 3, 2021). "Dollar Tree launches new store concept, announces $25.5 billion in sales last year". pilotonline.com. Archived from the original on March 4, 2021. Retrieved November 25, 2021.
  29. ^ Pierceall, Kimberly (March 3, 2021). "Dollar Tree launches new store concept, announces $25.5 billion in sales last year". The Virginia Pilot. Retrieved March 4, 2021.
  30. ^ Nassauer, Sarah (September 29, 2021). "Dollar Tree to Sell More Items Above $1 as Costs Rise". Wall Street Journal. Archived from the original on September 29, 2021. Retrieved September 29, 2021.
  31. ^ "What's in a name? Discount store Dollar Tree raises prices to $1.25". The Guardian. November 24, 2021.
  32. ^ "Dollar Tree to Close About 1,000 Stores, Books Over $2 Billion in Charges". WSJ. March 13, 2024. Archived from the original on June 11, 2024. Retrieved March 13, 2024.
  33. ^ a b Hitt, Jack (August 18, 2011). "The Dollar-Store Economy". The New York Times. Archived from the original on January 27, 2017. Retrieved November 26, 2016.
  34. ^ "Dollar Tree, Inc.: Frequently Asked Questions". Dollar Tree. Archived from the original on March 24, 2009. Retrieved May 17, 2015.
  35. ^ "Dollar Tree to buy Family Dollar to stave off competition". Reuters. July 28, 2014. Archived from the original on July 28, 2014. Retrieved May 17, 2015.
  36. ^ "Charlotte region loses corporate headquarters in Family Dollar buyout". charlotteobserver. Archived from the original on March 5, 2016. Retrieved August 17, 2019.
  37. ^ Paul Ziobro and Shelly Banjo (July 28, 2014). "Battle for Poor Shoppers Fuels Dollar-Store Deal". WSJ. Archived from the original on September 7, 2023. Retrieved May 17, 2015.
  38. ^ "fdosch13d060614.htm". sec.gov. Archived from the original on September 7, 2023. Retrieved May 17, 2015.
  39. ^ "fdosch13damd10619ex1.htm". sec.gov. Archived from the original on September 7, 2023. Retrieved May 17, 2015.
  40. ^ Davidson, Paul; Shell, Adam. "Dollar General offers $9.7B for Family Dollar". The USA Today. Archived from the original on September 7, 2023. Retrieved August 18, 2014.
  41. ^ "Dollar Tree Announces Definitive Agreement to Acquire Canadian Dollar Giant Stores" (Press release). Business Wire. October 11, 2010. Archived from the original on September 25, 2012. Retrieved October 3, 2012.
  42. ^ "Dollar Tree to buy Dollar Giant stores for $52M". Bloomberg Businessweek. Bloomberg L.P. October 11, 2010. Archived from the original on March 12, 2016. Retrieved October 3, 2012.
  43. ^ "Dollar Giant is now Dollar Tree Canada! - Dollar Tree Canada". dollartreecanada.com. Archived from the original on June 16, 2015. Retrieved May 17, 2015.
  44. ^ "Home". Dollar Tree Canada. Archived from the original on December 14, 2019. Retrieved January 9, 2020.
  45. ^ "Contact Us". Archived from the original on June 14, 2020. Retrieved January 9, 2020.
  46. ^ Hot glue gun recall Archived September 17, 2008, at the Wayback Machine, cpsc.gov
  47. ^ Candle set recall Archived September 20, 2008, at the Wayback Machine, cpsc.gov
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