Dollar Tree 2004 Annual Report Download - page 8

4DOLLAR TREE STORES, IN C. • 20 0 4 AN N UAL REPORT
• Wider acceptance of tender types, including debit,
credit, and even electronic benefit transfer payments.
• Developing a metropolitan store model, where higher
sales volumes will help absorb higher operating costs.
• Honing in on an optimal store size:10,000 – 15,000
square feet is ideal for us, allowing us to show the
great merchandise we have to offer, while keeping the
shopping trip quick and convenient for our customers.
Stores of this size continue to be our best performers.
It may seem like there’s a lot on our plate, and there
is. We’re constantly refining what we do, because it’s
essential to being a high-growth retailer. “A commitment
to continuous improvement is the only way to succeed
in the long run,”according to the authors of “The Value
Factor.”“The job of changing will never be ‘done.’”
Our 2005 plans revolve almost entirely around
stores. For the first time in years, we don’t need to build
any new distribution centers. We have ample capacity in
our existing distribution network to support all of our
store growth in 2005. And there are plenty of places
where there’s room for us to grow. While we’re growing,
I want to spend more time ensuring each prospective
new location meets our criteria for cost, size, sales and
profit potential. Meanwhile, we’ll continue to grow our
business in new and existing markets, opening about
one store per day.
The Dollar Tree formula is pretty simple: New
store openings + expansion of existing stores + increas-
ing store productivity = top-line growth. We continue
to work diligently to drive all three elements of that
formula to generate robust revenue growth. To a
certain extent, top-line growth helps drive profitability,
insofar as additional sales help us leverage the many
fixed-cost investments in the business — whether it’s
DCs, technology systems, or our people. But we’ve
always believed that we must continue to proactively
drive cost out of the system. To that end, you can
count on us to keep a sharp focus on expenses in all
areas of the business, and we will focus on increasing
inventory turns.
Our people are essential to our success in these ini-
tiatives. We are grateful for their tireless efforts in every
aspect of the business, and it is our mission to profes-
sionally develop these people to help drive Dollar Tree’s
future growth. We will continue to invest significantly in
the development of our associates to foster a stimulating
and rewarding environment in the years ahead.
To all of our associates, customers, vendors, and
shareholders: We appreciate your loyalty — past,
present, and future.
Bob Sasser
President and Chief Executive Officer
'00
'01
'02
'03
'04 20 ,444
16,878
13,042
7,818
10,129
Total Selling Square Footage
( I n t housands)