Dollar Tree 2012 Annual Report Download - page 6

‘08 ‘09 ‘10 ‘11 ‘12
$1,596
$2,242
$2,582
$988
$1,181
Cumulative
Share Repurchase
($ in Millions)
‘08 ‘09 ‘10 ‘11 ‘12
17.0%
20.7%
24.4%
14.8%
12.0%
Return on Assets
potential of Deals and particularly the opportunity that it provides to grow profitably in
the higher cost-of-operation urban markets. We opened 25 new Deals stores in 2012 and
ended the year with a net total of 194 stores across 18 states. We plan to continue this
growth rate in 2013.
Our Canadian integration and expansion continues. We initially entered the Canadian
market in the fourth quarter of 2010. In 2011 we set the foundation for future, profitable
growth in the Canadian market and increased the store count by 15%. rough the
investments made during 2011 in systems, training and infrastructure, we now have
consistent year-on-year data on which to base our sales and assortment planning. Specifically,
we have visibility to our on-hand, on-order and sales along with a trailing history by store
and by SKU. ese are all key factors in the management of an efficient supply chain and
improving customer satisfaction.
Our merchant teams are working together to leverage the buying power of Dollar Tree
to provide Canadian customers with broader, more exciting assortments and better values.
We are also focused on building and solidifying store teams and improving product flow to
the stores. We are working to increase the service level and in-stock position of basic products
while improving the shopping experience through a more powerful seasonal presence and a
higher level of merchandise energy – reflecting the best of Dollar Tree.
We are also aggressively expanding our Canadian store base. We expanded our store
count by 41% in 2012, and we ended the year with 140 stores in Canada. Additionally, in
2012, we completed the re-branding of all of the former Dollar Giant stores in Ontario to
Dollar Tree Canada. We will complete the transition with the re-branding of the stores in
the Western provinces by the end of the third quarter this year. We see enormous potential
in Canada, and we expect to grow our store count by 25% or greater in 2013.
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 additional
growth in our Deals format. Our goal is to be the leading retailer in Canada at the single
price point of $1.25 (CAD) just as we are in the U.S. at the $1 price.
Dollar Tree Direct, our e-commerce business, is expanding as planned. is additional
channel of distribution provides an opportunity to broaden our customer base, drive
incremental sales, expand the brand and attract more customers into our stores. We launched
our e-commerce platform in early 2009. Since then, customers have been discovering the
value of Dollar Tree Direct in ever-increasing numbers. In 2012, traffic on the site grew to
17 million unique visitors, an 18.6% increase over last year, and we sent 78 million emails to
existing and potential customers.
 Dollar Tree Direct now has over 2,600 items available on-line, including 850
unique items that can be purchased in less than case quantities.
 We continue to enhance the site to expand our reach and to improve the customer
experience. Significant enhancements to Dollar Tree Direct such as expanding
break-pack, enhancing our mobile capability and increasing our social-media
presence are attracting more customers and helping to drive brand awareness.
 Also in 2012 Dollar Tree launched e Dollar Tree Value Seekers Club. Members
enjoy such things as Member Exclusive crafts, contests, recipes, product offerings
and more! Membership is free, and you can join the Club at www.dollartree.com.
4 Dollar Tree, Inc.