Dollar Tree 2007 Annual Report Download - page 6

4 DOLLAR TREE, INC. • 2007 ANNUAL REPORT
restriction of the $1 price point to offer even more value and convenience to our customers while leveraging the
strengths and infrastructure of Dollar Tree. We began converting the stores to multi-price in the fall of 2006. In 2007
we honed the multi-price model and focused the merchandise assortment. We are excited about the availability of
new merchandise opportunities at the higher prices and the lift that it gives us in average ticket. The key elements
of a Deal$ store are surprising value, convenience and a fun and friendly shopping experience.
Our best test of the concept is in the opening of new Deal$ stores in new markets. In 2007 we opened 23
new stores and relocated 4 existing Deal$ stores, bringing our total to 137 multi-price Deal$ stores at year-end.
We have expanded the concept into new regions, including opening our first Deal$ stores in the Northeast, with
very good early results. We are very excited about the Deal$ concept and we recognize the growth opportunity it
represents. We believe Deal$ fills a unique niche in the value retail segment. It offers an opportunity to serve even
more customers in more markets.
CORPORATE GOVERNANCE AND SHAREHOLDER VALUE
Dollar Tree is committed to responsible corporate governance. We constantly analyze best practices and respond
with changes accordingly. In 2007, we adopted a majority vote governance policy with respect to the election of
directors who run unopposed, created an independent committee with responsibility for Corporate Governance,
established the position of Lead Independent Director on our Board, and added two new independent directors.
Most importantly we remain focused on upholding our core values of honesty, integrity and transparency. We
are uncompromising in these values and they will always be reflected in our strength of financial controls, and our
open and straight forward relationships with our customers, our suppliers, our associates and our shareholders. For
2007, we once again earned a “clean bill of health” with no material weakness noted in our assessment of controls
supporting the accounting and reporting processes, in compliance with the requirements of Sarbanes-Oxley legis-
lation. You can be assured that, in 2008, we will continue to operate our Company with a strong commitment to
financial integrity and the related internal controls while driving to a cost efficient infrastructure that delivers
shareholder value.
In addition to solid growth in revenue and earnings, in 2007 we returned more than $473 million to our
shareholders in the form of share repurchase. We believe this to be a good use of cash and we will continue to
examine strategies to build total shareholder returns.
We also recently enhanced our long-term debt structure, replacing our previous $450 million Revolving
Credit Facility with a $300 million Revolving Credit Facility and a $250 million term loan. The new structure
provides greater flexibility and a more favorable LIBOR spread than our previous structure. Our long-term debt
at the end of 2007 was unchanged from the previous year.
2008 GOALS AND OBJECTIVES
For 2008, we intend to build on the progress made last year by focusing our efforts on five key priorities. First
and foremost, to drive profitability by growing our top line, providing surprising merchandise value and merchandise
excitement to our customers, maximizing our gross margins and maintaining tight control of expenses. We will
continue to expand our frozen and refrigerated product, adding freezers and coolers to 150 stores in 2008.