Dollar Tree 2010 Annual Report Download - page 6

metrics at Deal$, upgrading our standards to provide a better, more compelling customer experience. We also saw
improving sales trends at our Deal$ stores, particularly in the new stores that we’ve opened in the past four years. Deal$
traffi c, ticket, and average unit retail all increased in 2010.
Looking forward to 2011, we will continue to build and refi ne our assortment to create more merchandise
excitement, increase the “wow” factor and give our customers more reasons to shop at Deal$. We will also continue
to roll out new Deal$ stores in targeted locations in a measured and thoughtful way. We opened 15 new Deal$ stores
in 2010 and we intend to open 35 new Deal$ stores in 2011.
New Markets – During the fourth quarter we acquired Dollar Giant stores in Canada – the fi rst expansion of
our retail operations outside of the United States. Dollar Giant was founded in 2000 and by 2010 had grown to a chain of
86 stores. The stores average 9,000 square feet, gross, and are located in four provinces: British Columbia, Ontario, Alberta
and Saskatchewan. Each store offers a mix of things you want and things you need all priced at $1.25 (CAD) or less.
Dollar Giant is successful, growing and profi table, with an outstanding management team. The management and
associates have extensive retail experience and the proven ability to build and expand an effective, profi table business.
They are among the key reasons for my confi dence about our future success in Canada.
In 2011, we intend to expand the store count by about 20%, while establishing an infrastructure of store teams,
systems and logistics to support more aggressive store growth in the future. Over the long term, we believe the Canadian
market can support 900 to 1,000 Dollar Tree stores. This is in addition to the 7,000 store potential for Dollar Tree in the
United States plus additional growth in our Deal$ format.
New Channels – Dollar Tree Direct, our e-commerce business, is an opportunity to reach new customers through an
additional channel of distribution. We launched Dollar Tree Direct in early 2009. It is another way to offer Dollar Tree
values to more customers, including organizations, small businesses, and individual customers planning events. Dollar
Tree Direct is off to a great start. We see major potential to grow this business. In 2010, we expanded our assortment,
increased the number of items available exclusively on Dollar Tree Direct and enhanced the site to improve the customer
experience and expand our reach.
• There are now over 2,000 products available for sale on-line – nearly double the number this time last year.
Examples of new on-line category additions in 2010 include such things as kitchen gadgets, kitchen linen &
textiles, nutrition bars and energy drinks to name a few.
• The Homepage was redesigned to feature more engaging content and to showcase key events and hot items.
Customers asked for more things to see and do on the site and we are responding.
• There were more than 10 million visitors to our site in 2010, with nearly seven million in the second half of the
year.
• In addition, 100 million emails were sent to existing and potential customers in 2010 and over 500,000 catalogues
were mailed to customers.
There is great potential in Dollar Tree Direct and I am pleased with the
progress the team has made.
Corporate Governance and Shareholder Value
Dollar Tree has a long-standing commitment to responsible corporate
governance and to building value for our long-term shareholders.
Our Board of Directors is active, involved, and committed to
strong corporate governance. The majority of the Board is comprised
of independent directors; all of the standing committees of the Board
consist entirely of independent directors and we have a lead independent
director. We have also added four new independent directors since
July 2007.
The Board regularly reviews the Company’s governance and the
effectiveness of the Board, Board committees, and individual directors. The
Board is also committed to reviewing best practices and has made several
changes in recent years. We maintain an open dialogue with shareholders
on governance matters and we continue increasing our understanding
of industry standards for best practices in corporate governance as
they evolve.
4 DOLLAR TREE, INC. ♦ 2010 Annual Report