Dollar Tree 2015 Annual Report Download - page 55

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39
Inflation and Other Economic Factors
Our ability to provide quality merchandise at a fixed price in our Dollar Tree stores and on a profitable basis may be
subject to economic factors and influences that we cannot control. Consumer spending could decline because of economic
pressures, including unemployment and rising fuel prices. Reductions in consumer confidence and spending could have an
adverse effect on our sales. National or international events, including war or terrorism, could lead to disruptions in economies
in the United States or in foreign countries. These and other factors could increase our merchandise costs, fuel costs and other
costs that are critical to our operations, such as shipping and wage rates.
Shipping Costs. Trans-Pacific shipping rates are negotiated with individual freight lines and are subject to fluctuation
based on shipping industry market conditions and fuel costs. We can give no assurances as to the final rate trends for 2016, as
we are in the early stages of our negotiations.
Minimum Wage. Multiple states and local jurisdictions passed legislation that increased their minimum wages in 2016 and
2017 and the federal government has made indications that it may consider increasing the federal minimum wage. As a result,
we believe our expenses will increase except to the extent that we are able to offset our payroll costs with savings in our
operations.
Currency Fluctuations. We are exposed to fluctuations in foreign currency exchange rates as a result of our operations in
Canada.