Dollar Tree 2011 Annual Report Download - page 6

‘07 ‘08 ‘09 ‘10 ‘11
9.8%
10.7%
11.8%
7.9 %
7.8%
Operating Margin
‘07 ‘08 ‘09 ‘10 ‘11
$1,181
$1,59 6
$2,242
$988 $988
Cumulative
Share Repurchase
($ in Millions)
in 18 states. We are excited about the growth potential of the concept and the opportunity that
it gives us to serve even more customers across the country. We added 28 new Deal$ stores in
2011 and we plan to continue this growth rate in 2012.
New Channels
Dollar Tree Direct, our e-commerce business, is an opportunity to drive direct sales, expand the
brand and attract customers into our stores with the offer of free shipping for pick up in any of
our stores across the country. We launched our e-commerce platform in early 2009. Since then,
new customers have continued to discover value at Dollar Tree Direct. Traffic on the site grew
to 14 million unique visitors in 2011, a 37% increase over last year.
In 2011, we made several enhancements to the site to expand our reach and to improve the
customer experience.
sDollar Tree Direct now offers customers the opportunity to purchase smaller quantities on
over 600 online items, while continuing to offer more than 2,500 items for sale by the case.
sDollar Tree Direct launched a Spanish language version of the website to serve this impor-
tant and growing customer base.
sDollar Tree Direct is now available to mobile users. Customers can view the merchandise,
read product ratings and reviews, make purchases, or utilize the Store Locator to find their
nearest Dollar Tree store directly from their Smart phones or other mobile devices.
sAdditionally in 2011 we launched Dollartreecanada.com and youtube/dollartree videos.
e goal of Dollar Tree Direct is to bring Dollar Tree values to more people with the added
convenience of e-commerce. I encourage you to explore the site at www.dollartree.com.
New Geographies
Our expansion into Canada is progressing. We initially entered the Canadian market in the
fourth quarter of 2010, through the acquisition of Dollar Giant Stores—a chain of 86 stores
averaging 9,000 gross square feet, located in British Columbia, Ontario, Alberta and Saskatch-
ewan. In 2011 we increased the store count by 15%, expanded into Manitoba and ended fiscal
2011 with 99 stores in Canada. Each store offers a mix of things you want and things you need
all priced at $1.25 (CAD) or less.
Our primary focus in 2011 was to lay the foundation for future, profitable growth in the
Canadian market. We intend to operate our Canadian stores on an identical platform to the
merchandising and productivity systems that support the stores in the U.S., and we have made
great progress toward that goal in a short period of time.
We have aligned merchandise plans and are solidifying our logistics model in Canada. We
are now supplying product to our stores through Distribution Centers in British Columbia
and Ontario. In addition, we have installed store-level POS and enterprise-level merchandising
systems, providing increased visibility to sales and inventory. Equally important, a base of his-
torical data is now being built by store and sku—all key factors in the management of an efficient
supply chain. We are beginning to roll out Auto Replenishment of basics and employing “smart”
allocations of new and seasonal merchandise just as we do in the U.S. ese systems provide a
platform for an improved flow of merchandise to the stores on a timelier basis. e result is the
opportunity for more efficient store operations, an increased level of in-stock of basic products,
higher store productivity, increased inventory turns and, most importantly, improved customer
satisfaction.
In 2012, we intend to grow our Canadian store base approximately 25% under the Dollar
Tree Canada brand. Over the longer term, we believe the Canadian market can support up to
1,000 Dollar Tree stores. is is in addition to the 7,000 store potential for Dollar Tree in the
United States plus growth in our Deal$ format.
4 Dollar Tree, Inc.