To get a clearer picture of Dollar Tree, Inc. and its growth as a business, one must look at the inception of the business. K.R. Perry opened a Ben Franklin store in Norfolk, Virginia in 1953, which later was renamed K&K 5&10. In 1970, Macon Brock, Doug Perry, and K.R. Perry started K&K Toys, also in Norfolk. The toy store expanded and there were over 130 stores on the East coast. The K&K 5&10 solo store stayed in business and became the basis for what is now known as Dollar Tree. In 1986, Macon Brock, Doug Perry, and Ray Compton started Only $1 with five locations across Georgia, Tennessee, and Virginia. In 1991, K&K Toys was sold to KB Toys, and all assets were invested in growing the dollar stores. In 1993, Only $1 was changed to Dollar Tree Stores to account for possible future pricing of items above the one dollar mark. In March of 1995, Dollar Tree went public on NASDAQ at fifteen dollars a share. Fast forward to 2014 to Dollar Tree’s celebration of its 5,000th store. While the company is obviously doing something right in order to …show more content…
There are medium barriers to entry, meaning that it is neither easy nor difficult for new companies to enter the industry. The industry is deemed mature, meaning that revenue increases at the same pace of the economy. Additionally, a mature industry means that there is established technology and processes and that there is total market acceptance of the brand. The revenue volatility of the industry is low, meaning less industry risk. The industry has recently benefited greatly from the recession. As unemployment rates have increased and disposable income has decreased, demand for low-priced items in discount stores has skyrocketed. Discount department stores have taken some consumers away from this industry, which is what has kept the industry from rampant