North America’s foremost operator of discount variety stores, Dollar Tree operates stores under the Dollar Tree, Family Dollar, and Dollar Tree Canada brands. Established in 1986, the Company announced on July 6, 2015, that it completed the acquisition of Family Dollar Stores, Inc., a top national discount retailer offering name brands and quality, private brand merchandise. Dollar Tree, Inc. is headquartered in Chesapeake, Virginia.
Dollar Tree has thousands of stores situated in shopping centers and malls in all 48 contiguous States. The Company operates at a $1 price point in its Dollar Tree segment. In 2010, it acquired 86 Canadian “Dollar Giant Stores” headquartered in Vancouver, British Columbia. These stores are operated in British Columbia, Ontario, Alberta, and Saskatchewan.
The Dollar Tree segment (Dollar Tree, Dollar Tree Canada, Deals, and Dollar Tree Deals brands) provides consumable merchandise, health and beauty care products, and everyday consumables, including household paper and chemicals, and frozen and refrigerated food.
It also provides toys, durable housewares, gifts, stationery products, party goods, greeting cards, softlines, and other merchandise; as well as seasonal/holiday merchandise. The Dollar Tree segment also operates ten distribution centers in the U.S. and two in Canada, as well as a store support center in Chesapeake, Virginia.
The Family Dollar segment provides consumable merchandise, including food, tobacco, health and beauty aids, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies. It also provides home products, and blankets, sheets, and towels; and apparel and accessories merchandise, as well as seasonal and electronics merchandise, and personal electronics comprising pre-paid cellular phones and services, stationery and school supplies, and toys.
This segment operates under the Family Dollar brand. This segment also has 11 distribution centers, and a store support center in Matthews, North Carolina.
As of July 30, 2016, Dollar Tree, Inc. operated 14,129 stores across 48 States and five Canadian Provinces. Regarding its Q3 2016 outlook, Dollar Tree estimates consolidated Net Sales for Q3 of 2016 to range from $5.02 billion to $5.10 billion, based on a low single-digit increase in same-store sales (the sales in retails store open for more than a year). Diluted earnings per share are estimated to be in the range of $0.76 to $0.82.
For Q2 2016, the Company had its 34th consecutive quarter of positive same-store sales. In Q2, it opened 99 new Dollar Tree stores. In addition, total Dollar Tree banner selling square footage grew 10.4% over the year prior. Dollar Tree ended Q2 2016 with 6,184 Dollar Tree stores across North America. Moreover, 210 “Deals” stores underwent conversion to Dollar Tree stores, nine Deals stores underwent conversion to Family Dollar stores, and three were closed because their lease term expired.
Dollar Tree is continuing the expansion of its frozen and refrigerated category. At present, the Company offers frozen and refrigerated product in 4,559 stores. Its intention is to expand frozen and refrigerated to 400 more stores this year. Furthermore, Dollar Tree has its Dollar Tree DC11. This is its new 1.5 million square foot South Carolina distribution center.