Dollar Tree 2015 Annual Report Download - page 5

t On October 13, we announced our plans to convert
all Deals stores to one of our two primary banners,
Dollar Tree or Family Dollar.
t And, on November 1, we successfully completed
our transaction to divest of 330 Family Dollar stores
as required by the Federal Trade Commission.
Record of Success Based on Discipline and Execution
Over the past 20 years, Dollar Tree has evolved from a
small, regional mall-based retailer to a national leader in
the discount retail sector. We continue to serve a broad
range of income levels through primarily suburban
locations. Our balanced mix of products and tremendous
oering of values positions us as a rst stop for customer’s
needs and wants.
Our focus is, and always has been, on the customer.
Our concept is unique and customers love it: everything
is $1.00, every day at Dollar Tree stores. We are vigilant
about understanding what our customers need and we
do our best to provide it to them. We strive to deliver the
“Wow” factor to every customer. Our stores are convenient,
bright, fun, friendly, and lled with great merchandise at
tremendous values.
Our merchandising model is powerful and exible.
Our product assortments are planned to oer the greatest
value to the customer for $1.00, and to do so at a cost that
meets our merchandise margin threshold. We utilize this
strategy of ever-changing assortments to our advantage.
Our customers expect there is always something new at
Dollar Tree. Customers can nd a balanced assortment
of the high value basics they need, and fun, exciting
discretionary merchandise they want, on each and every
store visit. Seasonal assortments are fresh and colorful,
providing merchandise energy to the customer’s shopping
experience as they enter the front door at the stores.
This strategic advantage has been validated by results
in varying consumer climates. History demonstrates
that we have increased our relevance throughout both
inationary and deationary cycles by leveraging our scale
and our exibility to change the product or the source,
while maintaining our focus on providing surprising value
to our customers and achieving margin targets. We are
dierent. When faced with cost pressures, most retailers
“keep the item and change the price”. At Dollar Tree,
we “keep the price and change the item” to continue
delivering great values at our $1 price point. And our
customers love us for this approach.
Adding the Family Dollar Brand
We have an incredible opportunity ahead as a
combined organization and the strategic rationale for
the combination continues to be as compelling as ever.
The strategic rationale for this combination is powerful.
t We have combined two very large organizations
with more than 13,000 stores and projected to
deliver more than $20 billion in sales in 2016.
t These are two well-established and well-respected
brands in the most economically resilient sector of
retailing. The Discount Retail sector has ourished
through all economic cycles.
t We will operate and grow both banners, combining
two complementary business models across xed-
and multi-priced strategies with the ability to serve
a broader range of customers and geography. The
Dollar Tree target customer is primarily a suburban
customer while the Family Dollar customer is largely
urban and rural.
t We are combining complementary merchandise
expertise, adding the Family Dollar expertise in
name-brand consumable products to the Dollar
Tree variety, seasonal and discretionary product and
global sourcing power.
t This combination generates signicant and
immediate opportunities for operational
improvement and near-term opportunities for
WE HAVE AN INCREDIBLE OPPORTUNITY AHEAD AS A COMBINED
ORGANIZATION AND THE STRATEGIC RATIONALE FOR THE
COMBINATION CONTINUES TO BE AS COMPELLING AS EVER.
Dollar Tree Annual Report 2015 3