News / Retailer News

Dollar Tree Talks Front End Changes

May 29, 2013

After reporting another record first quarter, Dollar Tree CEO Bob Sasser discussed the changes the retailer has implemented in its front end and impulse sections after Easter.

Dollar Tree’s same-store sales rose 2.1 percent in the first quarter of 2013 from a year ago, but total sales rose 8.3 percent to $1.87 billion, a record for the company’s first quarter. Its operating margin rose 70 basis points, another first-quarter record, and earnings per share climbed 18 percent to 59 cents a share, yet another record for the first quarter.

After Easter, Dollar Tree re-merchandised its checkout lanes, Sasser told analysts on a conference call, according to transcripts of the call from Seeking Alpha. Although some of the physical changes to the areas had been made at the end of 2012 with existing merchandise, Sasser said that a buying trip from July brought entirely new merchandise to the front end that was rolled out after Easter.

“We added a trend fixture to the front. A trend fixture is ever-changing, it's new product, it's fun product, it's impulse product,” Sasser said, according to the Seeking Alpha transcripts. “Some of it's kiddie candy, some of it is stationery, some of it is from toys, some of it's from all over the store. But it's trending and it's new and it's fresh and it really engages the customer and invites them to buy one more item to put in their basket.

“Then the new checkout assortment that we have, everything has a home on the checkout. We've bought for it, it's all new merchandise, it's not the same SKUs, it's new product. Some of it is similar, but it's all new. And it's laid out in a fashion that's easier to shop and more engaging. We have made a spot on our checkouts now for our drive item, which is the item that our cashiers are selling to our customers or suggesting to our customers each week. …  So a lot of changes, a lot of new product.”

And after the first six weeks, Sasser said the response was encouraging.

“So that was all done right after Easter this year, in April. And the new assortment is out there,” Sasser said. “Customer response has been terrific. It's doing all of those things that I just said, frankly. It's early in the year, but it is accomplishing all the things that we talked about. So I'm really pleased with that. Merchandise margin is good on the front-end, it's a better shopping experience, and helping us drive some of that variety sales.”

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

Recent Articles by Chris Freeman

You must login or register in order to post a comment.

Zigo Wify
February 25, 2014
Dollar shrub emulates in the dollar collection plus vile-finish peddle vends. Every dollar elder ancestrys a genus of produces including domestic, territorial, further soldier ticket characters. Parts organize in a Dollar Shrub fund encompass shape besides bombshell, meat furthermore bites, bacchanal, seasonal decor, housewares, glassware, dinnerware. introduction letter for a job

Multimedia

Videos

Image Galleries

April 2014 New Non-Food Products

This month's new non-food products include sunscreen bands, makeup remover, lip balm, jumbo cotton balls, healing ointment, and a shelf-management system for better merchandising.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

THE MAGAZINE

Private Label Buyer Magazine

PLB April 2014 cover

April 2014

The April 2014 issue of Private Label Buyer includes articles on Omnichannel, store brand sauces, and more. Check it out today!

Table Of Contents Subscribe

NBB Private Label Foods

Which factors will drive further awareness—and development—of national-brand-better (NBB) private label foods?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

plbuyer superstore logo

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40px