Dollar Tree 2012 Annual Report Download - page 5

We also plan to operate Better Stores. I am particularly pleased that average new store
sales per square foot increased once again in 2012, to the highest level since 2001. New store
productivity has now increased each year for seven consecutive years. is improvement has
been a team effort.
 Our Real Estate department is focused on improved site-selection and right-sizing
our stores to the market.
 Our Merchants are working to develop more productive floor plans and expanding
assortments with a focus on the most productive categories of merchandise.
 And our Field organization is opening stores faster and more efficiently through
improved staffing and building the bench of qualified store management.
ese have been the key elements to increasing our new store productivity and we
expect this to continue.
Elements of the strategy to increase store productivity can be seen in both new and
existing stores throughout the chain. Customers are seeing more powerful Seasonal
presentations, which create interest and a fun shopping experience. We are expanding
assortments in several categories including Candy, Stationery, Health and Beauty Care, and
Home and Household Products to enhance our relevance to our customers. We have re-
fixtured, re-merchandised and expanded assortments at the front end of our stores to create
more merchandise energy and to drive impulse sales. Our store associates are emphasizing
friendliness, with more effective customer engagement, and driving sales of related items
through cross merchandising and suggestive selling.
Our expansion of frozen and refrigerated product continues. We installed freezers and
coolers in 329 stores in 2012, including 190 new stores – exceeding our goal of 325
installations. We now offer frozen and refrigerated product in 2,549 stores. is important
category is extremely productive. It serves the current needs of our customers, drives traffic
into our stores and provides incremental sales across all categories – including our higher-
margin discretionary product. We plan to expand frozen and refrigerated product to an
additional 475 stores this year.
Another key component of our Growth strategy is the development of new retail formats, the
expansion of our geographic reach and the development of additional channels of distribution.
Specifically, that means Deals, Dollar Tree Canada and Dollar Tree Direct.
Our Deals format extends our ability to serve more customers with more categories and
increases our unit growth potential. Deals stores deliver low prices on everyday essentials,
party goods, seasonal and home products. By lifting the restriction of the $1 price point
at Deals we are able to serve more customers with more products at value prices every day.
Our goal is to surprise and delight our customers with every visit. Awareness of the Deals
brand is growing and the concept is building momentum. I am excited about the growth
2012 Annual Report 3
We have increased our relevance throughout inflationary and deflationary
cycles... leveraging our scale and flexibility... maintaining our focus on
achieving our margin targets and providing extreme value to our customers...
‘08 ‘09 ‘10 ‘11 ‘12
10.7%
11.8%12.4%
9.8%
7. 9%
Operating Margin
‘08 ‘09 ‘10 ‘11 ‘12
4.17 4.22 4.25
4.06
3.80
Inventory Turns