Dollar Tree cleaned house this week, announcing that its COO, CIO, chief legal officer and chief strategy officer all have left the company and that the chain’s CFO, Kevin Wampler, will transition out of his role once a successor has been named. (Wampler will stay on with Dollar Tree as an adviser until April 2023.)
What happened and how did the Chesapeake, Va.-based dollar chain arrive at its latest C-suite shakeup? Some news items of note from the past year paint a picture of a retailer well-positioned on one hand to seize on Americans' spending skittishness and shifting shopping behaviors in light of inflation that's higher than it has been in 40 years. On the other hand, a high-profile voluntary closure of hundreds of the company's Family Dollar banner stores earlier this year following a rodent infestation at a distribution facility and public pressure from some investors to deliver stronger returns—not to mention a price-point change that set tongues wagging—have placed Dollar Tree in a harsher spotlight than larger rival Dollar Generalhas faced.
A timeline of notable developments for Dollar Treein the past year:
September 2021:Dollar Tree, famous for sticking to a $1 price point storewide for three decades, announces that it will test higher base price points of $1.25 and $1.50 at some legacy stores.In addition, the chain said it would accelerate its expansion of Dollar Tree Plus!, an in-store department offering a selection of crafts, home decor, cleaning items and more at $3 to $5 price tags. Barclays analyst Karen Short wrote in a note at the time: "Certainly, the cost pressures that [Dollar Tree] is facing today in the aftermath of a global pandemic are unlike anything the company has seen over the many decades it has operated at the single $1 price point ... In theory, there is no better time to introduce higher price points at DT on a much broader scale."
November 2021:Dollar Tree moves to a $1.25 standard price point across its more than 16,000 stores nationwide. "This is the appropriate time to shift away from the constraints of the$1.00price point in order to continue offering extreme value to customers," the company said in a statement. The move, Dollar Tree said, would "enhance the company’s ability to materially expand its offerings, introduce new products and sizes, and provide families with more of their daily essentials."
December 2021:Family Dollar denounces a push by activist investor Mantle Ridge LP to replace the company's 11-member board of directors. "Mantle Ridge’s overreach in seeking to replace our full board with its own hand-picked slate—despite having no ideas or plans to improve on our business or operations—is not justified nor would it be in the best interests of Dollar Tree shareholders," the company stated.
February 2022: Dollar Tree's Family Dollar banner closes some 400 stores temporarily after a rodent infestation is discovered at a distribution facility. The company reports that anFDA inspection had found unsanitary conditions, including the infestation, atthe company’s distribution facility in West Memphis, Ark. Family Dollar, which Dollar Tree acquired in 2015, also issued a voluntary recall of some products that the FDA saidmay be unsafe for consumers to use because of potential contamination from the facility's unsanitary conditions. The same day that the FDA shared its findings, Dollar Tree announced that Executive Chairman Bob Sasser, who had been with the company more than 20 years, would retire.
March 2022:Dollar Tree announces a "reconstituted board" and names Rick Dreiling, a former Dollar General CEO whom Mantle Ridge had pushed to add to Dollar Tree's leadership team, as executive chairman. "I have long respected the incredible success ofDollar Treeand how the Company, under the stewardship ofBob Sasser, transformed the discount retail environment," Dreiling said in a statement at the time.Paul Hilal, founder and CEO ofMantle Ridge, signs on as the board's vice chair; five previous board members remain.
May 2022:Dollar Tree names two more former Dollar General executives to leadership roles in the company.John Flanigan, previously EVP of global supply chain for Dollar General, is named chief supply chain officer, and Larry Gatta, formerly SVP and general merchandise manager for consumables at Dollar General, is named chief merchandising officer for Family Dollar.
May 2022:Two weeks later, Dollar Tree announces that it saw a 6.5% increase in consolidated net sales, a 19.2% lift in gross profit and a 48.1% increase in earnings per share during the first quarter of fiscal 2022 in whatPresident and CEO Michael Witynski called "a strong start to the year." The company revised itsdiluted earnings per share guidance for full-year fiscal 2022 from an initial range of $7.60-$8 to $7.80-$8.20.
June 28:Dollar Tree announces thatChief Legal Officer and Corporate SecretaryWilliam Old, COO Thomas O’Boyle, Chief Strategy OfficerDavid Jacobsand CIO Andy Paisley have left the company and that searches for successors are underway. The company reaffirmed its updated fiscal guidance from May. "Our board is fully aligned with Mike [Witynski] that now is the right time to bring in new leadership to ensure the company remains on a strong trajectory," Dreiling said in a statement.
Added Wiynski: "As we look to the future, I believe these changes within our leadership team will bring new perspectives and experiences that will help accelerate our continued growth and deliver even greater value for our shareholders, customers, employees and suppliers."
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Dollar Tree started rolling out the $1.25 base price at their stores in late 2021, with all stores converted to the new price tag during the early part of 2022. However, the chain was already testing the waters with higher price points well before this change. They introduced their Dollar Tree Plus!How is Dollar Tree doing financially? ›
Additionally, the Company continues to experience inflationary cost pressures. The Company expects consolidated net sales for the fourth quarter of 2022 will range from $7.54 billion to $7.68 billion, based on a mid- to high-single-digit increase in same-store sales for the enterprise.How much is the CEO of Dollar Tree Worth? ›
The estimated net worth of Michael A. Witynski is at least $1 Million dollars as of 2023-01-14. Michael A. Witynski is the President and CEO of Dollar Tree Inc and owns about 9,479 shares of Dollar Tree Inc (DLTR) stock worth over $1 Million.How do things end up at the dollar store? ›
Sometimes, products hit the dollar stores because of damage or lack of freshness. BUT, they are often just offered cheaper because they operate on slimmer margins than grocery stores. Many items were surplus or overstock items from a company.What is the Dollar Tree going to be called? ›
A spokesperson told the Wall Street Journal that the retailer has no plans to change its name. Dollar Tree is the last of the dollar stores to increase its prices above the namesake price point.What is the future of Dollar Tree? ›
Dollar Tree will continue its aggressive growth in 2022. The extreme-value discounter plans to open 590 new stores and to renovate 800 Family Dollar stores in fiscal 2022. The new stores are expected to consist of 190 Dollar Tree stores and 400 Family Dollar stores.Why is Dollar Tree dropping? ›
The discount retailer's stock tumbled on Tuesday after the company said cost pressures will drive full-year earnings lower than investors had hoped. Earnings per share for fiscal 2022 are expected to be in the lower half of Dollar Tree's (ticker: DLTR) previous outlook range of $7.10 to $7.40.Is Dollar Tree a good long term investment? ›
A good valuation
Despite its strong performance in 2022, Dollar Tree is still reasonably valued compared to the wider market. With a forward price-to-earnings multiple of 18.9, Dollar Tree trades lower than the S&P 500 average of 19.4.
Broken out by brand, Dollar Tree locations experienced same store sales growth of 8.6% (8.5% in constant currency), while Family Dollar Stores showed comp growth of 4.1%. Gross profit increased 17.5% on a gross margin that improved 240 basis points to 29.9%.How much do Dollar Tree executives make? ›
Compensation by Company.
|Carrie A. Wheeler||Total Cash $275,000|
|Gregory M. Bridgeford||Total Cash $330,000|
|Jeffrey G. Naylor||Total Cash $295,575|
|Lemuel E. Lewis||Total Cash $275,000|
Initial Cost of Operating a Dollar Tree Store
Contrary to some sources, Dollar Tree does not have individual store owners. To open up a similar concept, you should expect to pay, on average, a franchise fee of $50,000.
Dollar stores stock very few fresh foods if they stock any. And, as the ILSR put it, “this has exacerbated the problem of food deserts and further eroded the economic prospects of vulnerable communities.”How can Dollar Tree sell so cheap? ›
They sell liquidated items
Dollar stores operate by selling liquidated, outdated, or otherwise cheaply acquired goods and inventory, typically when another chain store or distributor goes out of business, says Baron Christopher Hanson, owner of RedBaron Consulting.
If you frequent dollar stores and are looking to make some extra money, you might want to try reselling dollar store items. Dollar stores sell a variety of consumer goods such as electronics, party supplies, books, clothing, and discontinued products, which can all be sold online for the right price.Where is the biggest Dollar Tree located? ›
Today I take you around the World's Largest Dollar Tree located in Burlington, North Carolina.Why is Dollar Tree increasing? ›
“The economy continues to pressure middle and low household income customers, resulting in needs-based purchasing,” Dollar Tree finance chief Jeffrey Davis said. The company said it's drawing more higher-income customers than its typical demographic.Is Dollar Tree raising prices to $3? ›
After announcing its previous pricing initiative had been successfully implemented at all 7,800 of its Dollar Tree branded stores — two months ahead of schedule — President and CEO Michael Witynski told analysts and investors that the company was moving ahead with plans to roll out $3 and $5 product bundles in the ...What is the future of dollar stores? ›
Dollar General even plans to open 1,110 new stores during the 2022 fiscal year, while Dollar Tree is bolstering its supply chain to keep up with its own ambitious expansion plans, reported The Wall Street Journal.Has Dollar Tree lost customers? ›
Dollar Tree saw a “meaningful decline” in shoppers following the price hike, according to a Jan. 11 note from industry tracker Coresight Research.
Near the tail end of an unstable year for the global economy, the U.S. dollar hit a 20-year high in value. A number of factors, both domestic and international, have contributed to the strength of USD. Though economic conditions could shift in 2023, experts predict the dollar will hold a strong position.Is Dollar Tree in debt? ›
Long term debt can be defined as the sum of all long term debt fields. Dollar Tree long term debt for the quarter ending October 31, 2022 was $3.420B, a 5.86% increase year-over-year. Dollar Tree long term debt for 2022 was $3.417B, a 5.91% increase from 2021.Why did Dollar Tree change their name? ›
1993. The name of the company (Only $1.00) was changed to Dollar Tree Stores to address what could be a multi-price-point strategy in the future. Part equity interest was sold to SKM partners, a private equity firm.Why is Dollar Tree no longer a dollar? ›
Dollar Tree said that its decision to raise prices permanently was "not a reaction to short-term" inflation, but the change will help Dollar Tree return to its typical profit margin of around 35% next year.It will also help Dollar Tree offset rising costs.What is the most profitable dollar store? ›
1. Dollar General. Dollar General is the largest dollar store operator both in terms of annual sales (more than $34 billion in 2021) and total store count (some 18,000 locations in 46 states).Does Dollar Tree offer retirement benefits? ›
Our retirement plan is moving to Empower Retirement effective March 1, 2021. The plan will have a new website, dollartree.com/retire or familydollar.com/retire, and phone number, 866-906-0242.What benefits does Dollar Tree offer? ›
Our benefits package is intended to support you and your family, which is why we offer standard benefits like medical and prescription plans, as well as dental and vision plans. We also offer additional perks like access to a discount program, paid time off, a travel assistance program, and DailyPay, to name a few.Why is Dollar Tree still struggling to make profits? ›
Dollar Tree and Dollar General are also grappling with rising costs that are rippling through their supply chains. Profits are being squeezed as shoppers narrow their focus on necessities like groceries, which have more slim profit margins.Where does Dollar Tree get their products? ›
Dollar Tree will usually buy out almost expired goods from other companies so that they can be sold cheaply and still have a profit made on them when other stores do not want the inventory.Has Dollar Tree sales gone down? ›
The company raised its forecast for full-year net sales to between $28.14 billion and $28.28 billion, from $27.85 billion to $28.10 billion earlier. Total same-store sales rose 6.5% in the quarter, beating Refinitiv estimates for a 4.7% jump.
It's only change, not dollars. But yes, they do give you a yearly raise. 6 years. 15 cents once a year.Can you make a lot of money as an executive assistant? ›
4) The salaries are high.
Depending on the company, EAs may either be compensated hourly or by salary. Compensation is typically calculated based on experience, skills, geographic location, and most importantly, job responsibilities. Average starting salaries for experienced EAs range from $80,000 to $100,000.
|Name And Title||Total Compensation|
|C. Douglas McMillon President and CEO||Total Compensation $21,198,778 View details|
|M. Brett Biggs Chief Financial Officer||Total Compensation $8,789,904 View details|
|John Furner President and CEO, Walmart U.S.||Total Compensation $11,140,428 View details|
"We are pleased to announce we have completed our acquisition of Family Dollar and we formally welcome the Family Dollar team to the Dollar Tree organization," stated Bob Sasser, Chief Executive Officer in the release. Read the full release HERE. So we can verify, Family Dollar is owned by Dollar Tree.What country owns Dollar Store? ›
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. As of January 1, 2023, Dollar General operates 18,774 stores in the continental United States.Who is the CEO of Dollar Tree? › What's the highest paying franchise? ›
The company's number of locations and annual revenue are also good indicators that it is the most profitable franchise to own.
The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.How much does a dollar store owner make a year? ›
How much does an Owner make at Dollar General in the United States? Average Dollar General Owner yearly pay in the United States is approximately $20,000, which is 68% below the national average.Where do poor people shop? ›
The lower the income, the more likely consumers are to buy their groceries at dollar stores or mass discount stores like Walmart, Target, and Dollar Tree. They have a preference for familiar stores because they know they can get what they need at the right price.
Ohio Attorney General Dave Yost filed a lawsuit against Family Dollar and Dollar Tree for “unfair and deceptive” actions and “bait advertising,” according to the complaint filed in the Butler County Common Pleas Court on Monday, Nov.What are the 10 things not to buy at the dollar store? ›
- Knives. 1/12. Good chef's knives don't come cheap, so you might be tempted to pick up a blade or two at the dollar store. ...
- Plastic Kitchen Utensils. 2/12. ...
- Medicine and Vitamins. 3/12. ...
- Pet Food. 4/12. ...
- Makeup. 5/12. ...
- Sunscreen. 6/12. ...
- Toys. 7/12. ...
- Batteries. 8/12.
Dollar Tree started rolling out the $1.25 base price at their stores in late 2021, with all stores converted to the new price tag during the early part of 2022. However, the chain was already testing the waters with higher price points well before this change. They introduced their Dollar Tree Plus!What is worth buying at the dollar store? ›
- Greeting Cards. One of the best deals at the dollar store by far are the greeting cards. ...
- Stickers and Activity/Coloring Books. ...
- Reading Glasses. ...
- Cleaning Supplies. ...
- Travel-Sized Items. ...
- Table Centerpieces. ...
- Party Supplies. ...
- Storage and Organization Containers.
Dollar Tree prices items at $1.25+, with the Dollar Tree Plus stores selling items for as high as $5.00 each. Family Dollar prices operate more like a traditional grocery store, with some items even going for over $20.What is the easiest to resell? ›
- Apparel. Whether you're simply looking to clean out your closet or want to turn reselling into a part-time gig, apparel of all kinds is perfect for flipping. ...
- Cameras. ...
- Smartphones, Tablets and Tech Accessories. ...
- Exercise Equipment. ...
- Household Appliances. ...
- Used Books. ...
- Designer Bags. ...
- Vintage Jewelry.
What is Dollar Tree's merchandise return policy? So that we may continue to provide you extreme value when shopping at one of our retail stores, we reserve the right to limit quantities, do not offer refunds, and consider all sales final. We will gladly exchange any unopened item with the original receipt.What items can I legally resell? ›
Generally, it's not illegal to resell an item that you have legitimately purchased. Once you have purchased something at retail it is yours to do with as you choose. Manufacturers tend to have little or no control over a product past the first customer they sell to.Is everything still $1 at Dollar Tree? ›
That's right—despite the name, not all dollar stores sell every item in the store for just a dollar or less. Dollar Tree is an actual dollar store (for the most part). The company recently announced it will sell items in certain locations for more than its typical $1 price.When did Dollar Tree Plus start? ›
In 2019, we rolled out our Dollar Tree Plus! offerings in select stores in the United States, which allowed customers to find high-value items at $3 and $5 price points.
Sasser concluded, “We appreciate the efforts, dedication and teamwork displayed by both Dollar Tree and Family Dollar associates throughout our integration planning processes. We are well-prepared to integrate our two companies.”Why is the Dollar Tree 1.25 now? ›
Its CEO Michael Witynski said the new prices would allow the company to withstand rising supply chain and labor costs, which were eating into profit margins.Is the Dollar Tree cheaper than Walmart? ›
Is Dollar Tree cheaper than Walmart? The short answer is that yes, Dollar Tree can be cheaper than Walmart when it comes to buying certain things. This is based on the unit price you'll pay at Dollar Tree vs. Walmart.