Chesapeake, Va. – Dollar Tree has completed the rollout of its new baseline price two months ahead of schedule.
The company launched the transition in October, introducing the $1.25 price point for the majority of its products in 100 stores. It originally planned to convert pricing changes in all locations by the end of April, but wrapped in late February.
“Our shoppers have been very supportive of the change, confirming that consumers continue to choose Dollar Tree for the extreme value our products offer compared to other retailers,” said Michael Witynski, president and CEO of Dollar Tree Inc.
The new pricing has enabled Dollar Tree stores to reintroduce key traffic-driving products that were previously discontinued due to the constraints of the $1.00 price point.
“We continue to have terrific performance on other key strategic initiatives, including the expansion of our $3 and $5 Plus assortment in Dollar Tree stores, as well as our Combo Stores and H2 Renovations at Family Dollar,” he added as the company announced its fourth quarter and year-end results last week.
And there more to come. During the new fiscal year, the company plans to open 590 new stores, comprising 190 Dollar Tree stores and 400 Family Dollar stores. Approximately 350 of the new Family Dollar stores will be in the Combo Store format. Additionally, the Company plans to expand the $3 and $5 Plus assortment to more than 1,500 Dollar Tree stores. It also plans to renovate 800 Family Dollar stores.
For the quarter ended Jan. 29, consolidated net sales increased 4.6% to $7.08 billion compared to the prior-year quarter and same-store sales rose 2.5%. Same-store sales for Dollar Tree were up 3.1%. Family Dollar same-store sales increased 1.7%.
For the full fiscal year, consolidated net sales increased 3.1% to $26.31 billion. Enterprise same-store sales , with same-store sales up 1.0% on a constant currency basis. Same-store sales for Dollar Tree increased 2.1% (or 2.2% when adjusted to include the impact of Canadian currency fluctuations). Family Dollar same-store sales decreased 0.1%, representing an increase of 10.4% on a two-year stack basis.
Net income was $1.33 billion and diluted earnings per share improved 2.7% to $5.80, compared to $5.65 in the prior year.