Dollar Tree Term Paper

Dollar Tree has actively grown both organically and through acquisitions. The strategy for growth has been based on an understanding of their industry and where they can best operate in that industry (Parnell, 2014). In 2015 Dollar Tree acquired Family Dollar which created the largest chain of discount retailers in the U.S. Operating close to 14,000 locations nationally the company’s strategy has been fairly straight forward. They strive to maintain a balance of products, variety, and value, through a minimal footprint. Stores are located in small towns, big cities and everywhere in between. Most often found in strip malls and surrounded by other successful complimentary businesses, they are contained within 8,000 to 10,000 square feet. Integrating

Store enhancements include boosting their food and beverage offerings, including additional refrigerators and freezers, and expanding seasonal and promotional offerings. Based on the thin operating margins actively managing the supply chain and capitalizing on their purchasing power based on their size and scope, will potentially assist in improving overall revenue. Ultimately, Dollar Tree operates in a highly competitive market with low margin which relies heavily on quickly turning over products. Aimed at middle class suburban dwellers, the stores are clean, easy to navigate, and even easier to get in and out of. Shoppers find the experience of entering a Walmart or Target, for example as time consuming and somewhat difficult. Parking is more challenging, stores are much larger, and the temptation to pick up items not needed is strategically greater. The potential for future growth and success appears

Variety discount stores cluster into varying strategic groups. Discount retailers include Walmart, Kmart, Target, Big Lots, Dollar General, and regional stores such as the 99 Cent Only Store, fall within the industry, however they form separate strategic groups for the purpose of tactical planning. These groups are determined by their size, scope and focus. Walmart, Kmart and Target are far larger than other discount retailers and offer an assorted product line and extensive variety. Often times these stores include complete grocery offerings, sporting equipment, electronics, clothing, and even appliances. Retailers offering a more focused approach such as Dollar Tree, Dollar General and Big Lots form a separate strategic group. By providing a wide selection including basics found in general variety stores and maintaining slightly larger locations, Dollar Tree appears to compete outside of its specific strategic group in particular