The “new era” for Chesapeake-based value retailer Dollar Tree has already begun.
“The world has changed: Customers are more digitally connected, costs are higher, competition is shifting, and tariffs have added more volatility,” Dollar Tree CEO Mike Creedon said.
During the company’s Investor Day presentation on Wednesday, Creedon, who stepped into the role 10 months ago, recapped where the company has been and the opportunities ahead.
At the kickoff of the livestreamed event from New York, Bob LaFleur, Dollar Tree’s senior vice president for investor relations, said these are exciting times for the now standalone business.
Dollar Tree, which grew from a single store in Norfolk, now has more than 9,200 stores across North America. It will mark its 40th anniversary next year.
“We have made significant progress and while we’re proud of where we’ve come and how far we’ve come, we also know there’s substantial opportunity ahead,” Creedon said.
“Since we last met in June of 2023, the business has advanced in significant ways,” LaFleur said. Most notably was the sale of Family Dollar in July, marking a definitive moment in the company’s journey, he said.
Dollar Tree launched its delivery partnership with Uber Eats in August and has been on board with Instacart since October 2021.
Despite the ongoing tariffs, Dollar Tree’s merchant teams have been able to deliver the lowest cost possible for items, Creedon said. The company is modernizing its distribution centers with enhanced technology and infrastructure investments.
The retailer has evolved from a model of a single price point to a multi-price assortment, from an aging store base to a fleet of refreshed stores and from under-investment in technology to an artificial intelligence-enabled enterprise, Creedon said.
“Expanding beyond $1.25 has allowed us to meet more of our customers’ needs, and in turn, drive sales,” Creedon said.
Dollar Tree sells predominantly at the $1.25 price point, an increase from $1 in late 2021. It started testing higher price points in 2019, expanded $3 and $5 price points in the aftermath of the pandemic and added $7 items last year.
He said the price variety means the introduction of new products, categories, larger pack sizes and national brands.
“This is not a departure from what made Dollar Tree, Dollar Tree. It’s an expansion of that promise,” Creedon said. “It’s how we remain relevant to customers today while creating sustainable growth and stronger returns for the future.”
Sandra J. Pennecke, 757-652-5836, [email protected]
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