Dollar Tree 2004 Annual Report Download - page 7

DOLLAR TREE STORES, IN C. • 20 0 4 AN N UAL REPORT 3
centers made possible dramatic reductions in the
average distance our trucks travel from distribution
center (DC) to store, helping to partially mitigate
the increase in fuel prices.
• Becoming the first truly national dollar-store
operator in the United States when we opened
our first store in North Dakota. We have the infra-
structure and management oversight in place such
that we can open new stores anywhere in the
continental United States.
• Achieving record retention of store managers. We’ve
found there’s a direct link between manager tenure
and store performance. So the better the job we do
attracting, developing, and retaining qualified
managers, the better our stores perform.
• Completing our point-of-sale (POS) rollout to
virtually the entire chain. POS technology is now
in place in nearly 2,600 of our stores, providing us
the visibility we need to run the business more effi-
ciently. To put it in perspective, this technology was
not in our stores four years ago. As we know in retail,
all items do not sell similarly in each store. Today, we
are able to see exactly what’s selling at each store,
which makes planning, allocation, and replenishment
much more precise. More than ever before, we can
provide a better Thrill of the Hunt to our customers,
because we know what they’re looking for.
In 2004, we again set record highs for sales and
earnings, even though the headwinds from higher
energy prices and other factors kept the percentage
increases in sales and earnings lower than we have
become accustomed to. What’s encouraging, though,
is what we have in the works, to drive stronger sales
and earnings performances in the years ahead. Here’s
a short list:
• Automated store replenishment of additional key
categories and items to additional stores will
help raise in-stock levels, yet keep backrooms free
of excessive inventory.
• New route-optimization software that minimizes
the number of trucks and trips we need to make to
deliver merchandise to our stores.
• A more-extensive marketing campaign that includes
broadcast advertising via electronic media, such as
radio and television, as well as public relations to tout
new-store openings. It’s all about driving awareness
of Dollar Tree and our product, which should increase
foot traffic through our stores.
$1.58
$1.54
$1.09
$1.08
$1.35
Earnings Per Share
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'01
'02
'03
'04
Bob Sasser
President a nd
Chief Executive Officer