Dollar Tree to Launch Multi-Price Initiative
CHESAPEAKE, Va. — As Dollar Tree Inc. closes its fiscal 2019 year, it is putting 2020 initiatives into focus.
Key among them: the launch of Dollar TreePlus! 2.0 and approximately 1,250 Family Dollar H2 renovations, CEO Gary Philbin announced during the company's fourth quarter and fiscal year 2019 earnings.
Dollar TreePlus! 2.0 is the second phase of the discount retailer's multi-price initiative, which was piloted in 2019. The initiative charges customers more than $1 for some items. It was designed to understand how customers respond to the addition of merchandise at values greater than $1, Convenience Store News sister publication Chain Store Age previously reported.
The retailer conducted planning during the first quarter 2019, including store selection and merchandising. In mid-May, it introduced Dollar TreePlus! merchandise into the first stores.
The initial test phase was planned to be expanded to more than 100 urban, suburban and rural Dollar Tree store locations.
As the retailer's test lifted the restriction on the $1 price point, it did not raise prices on its current assortment of $1 items. Customers will see new Dollar TreePlus! items added to the Dollar Tree offering, promoted as "More Choices, More Sizes, and More Savings."
"During this test, we look forward to measuring and assessing the initial results and understanding if the introduction of multiple price points across a broader set of stores is in the best interests of our customers, company and shareholders," Philbin said at the time of the pilot.
Additionally, Dollar Tree will renovate approximately 1,250 Family Dollar H2 stores. Referred to as H2, the format is a new model for both new and renovated Family Dollar stores. Testing of the H2 model began in 2018.
During Q4 2019, the company opened 112 new stores, expanded or relocated 17 stores, and closed 95 stores. It also opened 10 stores that were re-bannered from Family Dollar and completed five renovations to the Family Dollar H2 format.
"As we enter 2020, our teams are aligned, energized and focused. Plans for the year include approximately 1,250 Family Dollar H2 renovations, the launch of Dollar TreePlus! 2.0 initiative, and a focus on driving sales, improving gross margin and managing costs effectively," Philbin said.
Chesapeake-based Dollar Tree operates more than 15,110 stores in 48 states and five Canadian provinces, with locations operating under the Dollar Tree, Family Dollar and Dollar Tree Canada banners.
Convenience Store News and Chain Store Age are properties of EnsembleIQ.