Dollar Tree Is Making These Major Changes in 2023, Executives Announce
Shoppers will see more Dollar Tree stores—and changes to those they already shop at.
With inflation continuing to rear its ugly head, more and more Americans are turning to dollar stores to keep them on budget—and chains like Dollar Tree are certainly reaping the benefits. For the last quarter ending Jan. 28, Dollar Tree exceeded Wall Street's expectations, according to The Wall Street Journal, thanks in large part to an influx of higher-income shoppers also looking to conserve cash. Illustrating this, in a March 1 press release, Dollar Tree announced that same-store sales spiked by 7.4 percent for the Dollar Tree chain and 5.8 percent for its subsidiary chain Family Dollar. Moving into 2023, the retailer isn't slowing down—and it's now making some considerable changes to reach its long-term goals. Read on to find out what Dollar Tree is switching up and why.
READ THIS NEXT: Dollar Tree Accused of "Endangering Everyone" Who Shops There.
It's introducing more $3 and $5 items.
During a March 1 earnings call, Rick Dreiling, Dollar Tree chairman and chief executive officer, confirmed that shoppers will see more items at $3 and $5 price points in 2023.
"In 2022, we added $3 and $5 plus merchandise into more than 1,800 Dollar Tree stores," Dreiling said. "We plan to add this multiple price point product in another 1,800 or more stores in 2023."
According to Insider, these pricier products are part of the Dollar Tree Plus line, which is currently available at one-third of Dollar Tree stores. Per Dollar Tree's website, there are different categories of Dollar Tree Plus items, including seasonal items, party supplies, home décor, toys, apparel, and more.
You'll also see more refrigerated and frozen selections.
In addition, Dollar Tree is also "aggressively expanding" its $3, $4, and $5 frozen and refrigerated products. In 2022, the company introduced these products, along with new storage coolers, to 3,500 stores.
"This consists of three cooler doors, one at each price point with an attractive selection of proteins, pizza, ice cream, and more, which the customers are responding positively to," Dreiling said on the call.
According to Dreiling, shoppers who purchased at least one of these more expensive items spent double when compared with customers who didn't put any "multipriced items" in their baskets.
The discount chain is opening hundreds of new stores.
Also during the March 1 earnings call, Jeff Davis, chief financial officer for Dollar Tree, stated that we'll see many more Dollar Tree stores pop up in 2023.
"Our growth and productivity improvement projects will include approximately 650 new stores," Davis said on the call.
Davis didn't provide additional commentary on where and when new stores will be opening, nor what they might look like. He also didn't specify whether this total includes both Dollar Tree and Family Dollar stores.
It's worth noting that not everyone is thrilled about more dollar stores in general. Some smaller communities fear they hurt local businesses—even though Dollar Tree stated that additional stores help prevent food deserts, per The New York Times. Speaking to this opposition, since 2019, over 70 dollar store proposals (including those for both Dollar General and Dollar Tree) have been rejected by communities, the outlet reported, citing a report from the Institute for Local Self-Reliance.
Existing stores are getting a makeover.
Davis also noted that roughly 1,000 stores are being renovated in 2023. Last year, Dollar Tree renovated approximately 796 stores across the U.S. Again, Davis, didn't go into detail about the renovations, but this isn't a new initiative. According to PYMNTS, Dollar Tree is actively remodeling its entire store footprint to better serve rural communities and meet increased demand for food and drink options.
During a Nov. 2022 earnings call, Mike Wytinski, former president and CEO of Dollar Tree, stated that Family Dollar stores, specifically, are getting more product options and a more innovative store layout and shelving setup.
"That allows us to bring in more assortment into the store and [get] more sales per square foot," he said. "The cooler is absolutely an improvement. And every time we remodel a store, we want to bring in more coolers, both cold—cool beverage and frozen beverage, because that's what the customer is moving to. And it's a convenience item and it's meeting their needs."
Best Life reached out to Dollar Tree for more information on its plans for 2023 but has yet to hear back.