Dollar Tree is on the fast track to continuous growth after recently
announcing a phenomenal financial growth, expanded assortments and
booming store expansion plans.
In its most recent second quarter, the company announced total sales of
$223 million, an increase of 11.9 percent over the second quarter of
fiscal 2008. The retailer attributes much of its success to its long
time customers, which are shopping more frequently and the addition of
new customers.
According to Bob Sasser, President and Chief Executive Officer of
Dollar Tree, "Our success is driven by the value of our merchandise and
the quality of our shopping experience and the second quarter customers
continue to rely on Dollar Tree's expanded assortment of basic
products.
Dollar Trees' top performing categories include health and beauty care
basics, household basics, and food. It discretionary business is also
growing with party supplies, books, floral, and lawn and garden
supplies and seasonal items delivering strong growth.
Dollar Tree also notes that's its inventory productivity has been
increasing. By leveraging its investments in logistics and technology,
the company's store teams including its planning, allocation, and
replenishment organizations have been highly effective. These teams
have been flexing inventory to meet increasing customer demand and
improve its stock of basics, while developing smaller allocation of
seasonal product consistent with sales trends and consistently
increasing its inventory turns.
Dollar Tree continues aggressively open new stores. During the second
quarter this year, the company opened 60 new stores. It relocated and
expanded another 16 stores and total square footage grew by 6.4
percent. For the full year, the company now plans to open 220 new
Dollar Trees, 20 Deals stores, and will relocate and expand about 75
existing stores for a total of 315 store projects.
Last quarter, the company also announced the launch of Dollar Tree
Direct, an enhanced e-commerce platform where every online item is a
value at only $1 and is sold in case pack quantities. The company has
expanded its payment options available to online customers by adding
Bill Me Later. The retailer plans to reach out to millions of customers
via e-mail blasts and also has produced its first Deals Direct catalog
that has been distributed at all Deals stores.
"Our investments in infrastructure continue to translate into better
inventory management, more efficient stores, improved in stock
condition, and a crisper execution of our model," says Sasser. "Our new
Deals concept is progressing and exciting. We're opening new stores in
new markets, building store teams, strengthening the merchandise
organization, and creating merchandise excitement in our Deals stores."
J. C. Penney Launches New Private Label Brand
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J. C. Penney announces the launch of she said, a contemporary career
sportswear brand catering to the female professional. Bolstering
JCPenney's assortment of contemporary brands, the private brand -
designed, developed and sourced in-house - is now available at JCPenney
stores, online at jcp.com and via catalog.
"The launch of she said strategically positions the Company to meet the
demand for a sportswear collection that works into a younger customer's
everyday life with cutting-edge style and quality at affordable prices,
ultimately making JCPenney the destination for this important customer
niche," says Liz Sweney, executive vice president for Women's at
JCPenney. "she said is the latest example of how our in-house design
talent - along with our cycle time/flow initiatives - is a strong
competitive advantage for JCPenney, providing us the capability,
flexibility and speed to step up our style with a variety of new
contemporary brands."
Named for the girl "in the know," she said features a body conscious
fit with signature pieces that allows customers to mix and match styles
to create their own unique look. Items throughout the collection easily
transition from work to going out and will be offered at JCPenney's
"better" and "best" pricing tiers. she said will be supported by print,
direct mail, preprint and digital marketing. she said joins JCPenney's
growing assortment of contemporary exclusive brands including Bisou
Bisou, I "Heart" Ronson, ALLEN B., Oxford & Regent and Twelfth of
Eleven, creating a coalition of brands that provides customers with a
variety of style and fashion at affordable prices.
Sweney added, "In today's retail environment, price alone cannot be the
primary factor for buying. After months of pulling back on spending due
to the recession, consumers have a pent up desire to spend - even if
only a little. However, they're not looking to spend it on basics, they
want something special. Now is the time to invest and grow our
contemporary business, taking our style to a younger, more discerning
audience by offering them new, fashion-forward merchandise - along with
a new exciting and engaging shopping experience - all at our affordable
prices."
Catering to how the contemporary customer likes to shop, JCPenney will
feature all of its contemporary Women's brands together in store,
online and via catalog, allowing customers to find the latest looks,
styles and fits to mix and match. In-store, floor layout and visual
elements have been updated with a signature purple color theme and
design, creating a zone for the contemporary customer.
Online on jcp.com, the brands have been brought together under a new
contemporary lifestyle tab under Women's. The contemporary lifestyle
tab will expand in October to include a robust site that will allow
customers to mix and match pieces, search for pieces by designer or
category, share looks with friends via Facebook, and more. Furthermore,
a specialty "Little Red Book" catalog to be mailed on Sept. 16 that
will highlight for customers a variety of styles from the Company's
contemporary lifestyle assortment.
