Retail chain Dollar Tree reported, which will expand the range and add more products worth more than a dollar.
Dollar Tree - a chain of cheap stores, where most of the goods are 1 $. We analyzed the company's business in detail in our review..
Dollar Tree Launches New Dollar Tree Plus Chain In 2019, where goods are sold for more than a dollar. In its second quarter financial report, the company noted, that consumers liked the new format.
Now Dollar Tree wants to add more products with different prices, including their traditional shops. In total, the company has almost 16 thousand stores. Of these in Dollar Tree Plus format - 340. By 2024, the retailer expects to increase this number to five thousand.
More Dollar Tree Celebrates Combo Store Success. In such stores there are both departments with cheap goods., per dollar, as well as departments with more expensive things. According to the leadership, profitability and sales in the Combo Store are much higher compared to traditional stores.
Due to disruptions in the supply chain, rising prices and labor shortages, many retailers are experiencing difficulties. To cut costs, retailers are forced to raise prices. Even shops for cheap goods.
Dollar Tree's gross margin fell from 30.5 to 29,4%. Expanding the assortment with more expensive goods, the company expects to improve overall profitability and increase sales.
Investors reacted positively to Dollar Tree statement. During the day, the company's shares rose by 17%, to 101 $. Since the beginning of the year, the retailer's securities have fallen in price by 6%.