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Dollar Tree
American discount variety chain

Dollar Tree, Inc. is an American multi-price-point chain of discount variety stores headquartered in Chesapeake, Virginia. A Fortune 500 company, it operates over 15,000 stores across the continental U.S. and Canada, supported by 24 distribution centers. Dollar Tree also owns the Family Dollar chain and Dollar Bills stores. Competing in the dollar store and low-end retail markets, its stores offer diverse products including food, health, party supplies, and seasonal décor. Since 2012, manufacturer coupons are accepted nationwide. While Dollar Tree has faced criticism for allegedly creating food deserts, the company argues it provides food access in underserved areas.

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History

Early years

In 1953, K. R. Perry3 opened a Ben Franklin variety store in Norfolk, Virginia, which later became known as K&K 5&10.

In 1970, K. R. Perry, Doug Perry, and Macon Brock started K&K Toys in Norfolk, Virginia. This mall concept grew to over 130 stores on the East Coast.4

In 1986, Doug Perry, Macon Brock, and Ray Compton started another chain store called Only $1.00 with five stores, one in Georgia, one in Tennessee, and three in Virginia. The expansion of dollar stores was continued alongside K&K Toys stores, mostly in enclosed malls.5

On April 27, 1989, the first “Dollar Tree”-branded store opened at the Jessamine Mall in Sumter, South Carolina.6 In a May 1989 advertisement in the Sun-News, the fledgling chain, apparently already planning 100 stores for the eastern United States, bills the dollar-pricing model as the “hottest new shopping concept in America.”7

1990s

In 1991, the corporation made a decision to focus exclusively on the expansion of dollar stores after selling K&K stores to KB Toys, owned by Melville Corporation.8

In 1993, the name Only $1.00 was changed to Dollar Tree Stores to address what could be a multi-price-point strategy in the future, and part equity interest was sold to SKM partners, a private equity firm.9

The Perrys and Brock got the idea for the company from another retailer known as Everything's A Dollar, which went bankrupt in the 1990s.10

In 1996, Dollar Tree acquired Dollar Bill$, Inc., a Chicago-based chain of 136 stores.

In 1997, the company opened its first distribution center and its new store support center, both located in Chesapeake, Virginia.

In 1999, Dollar Tree acquired Only $One stores based in New York.11 That same year, the company opened its second distribution center in Olive Branch, Mississippi.

2000s

In 2000, Dollar Tree acquired Dollar Express, a Philadelphia-based company, and also built a new distribution center in Stockton, California.1213 In 2001, the company opened two additional distribution centers in Savannah, Georgia and Briar Creek, Pennsylvania.1415 In 2003, Dollar Tree acquired Salt Lake City, Utah-based Greenbacks, Inc., and opened a new distribution center in Marietta, Oklahoma.1617

In 2004, Dollar Tree opened its first store in North Dakota which marked its operation of stores in all 48 contiguous states. The company also opened new distribution centers in Joliet, Illinois and Ridgefield, Washington.1819

In 2006, Dollar Tree celebrated its 20th year of retailing at a $1.00 price point, opened its 3,000th store, and acquired 138 DEAL$ stores, previously owned by SUPERVALU INC.20

In 2007, Dollar Tree expanded its Briar Creek Distribution Center and crossed the $4 billion sales threshold.21 In 2008, Dollar Tree earned a place in the Fortune 500. By the close of 2009, the company opened a store in Washington, D.C., and purchased a new distribution center in San Bernardino, California.22

In 2009, Dollar Tree redesigned its website with a new e-commerce platform. DollarTree.com sells Dollar Tree merchandise in larger quantities to individuals, small businesses, and organizations. The company also advertises in-store events, specials, seasonal promotions, and featured products through the site, and users can locate a retail store, research information about Dollar Tree, and view product recalls. Dollar Tree also added customer ratings and reviews, and customer stories to the site.

2010s

In 2010, the corporation opened its 4,000th chain store and acquired 86 Canadian Dollar Giant stores which are based in Vancouver, British Columbia. The stores are operated in British Columbia, Alberta, Saskatchewan and Ontario. These are the first retail locations outside of the United States operated by Dollar Tree.

In 2011, Dollar Tree achieved total sales of $6.63 billion, opened 278 new stores, and completed a 400,000 square feet (37,000 m2) expansion of its distribution center in Savannah, Georgia.

In 2012, Dollar Tree opened another 345 new stores and exceeded $7 billion in sales.

On July 28, 2014, Dollar Tree announced that it was offering $9.2 billion for the purchase of competitor chain store Family Dollar. On August 18, 2014, Dollar General lodged a competing bid of $9.7 billion for Family Dollar.23 The bid was rejected on August 20, 2014, by the Family Dollar board, which said it would proceed with the deal with Dollar Tree.24

In January 2015, Dollar Tree announced plans to divest 300 stores in order to appease US regulators scrutinizing its proposed takeover of Family Dollar stores.25

In June 2015, the firm agreed to sell 330 stores to private equity company Sycamore Partners as part of the approval process for its $8.5 billion takeover of Family Dollar.26

The company was ranked 134 on the 2018 Fortune 500 list of the United States corporations by revenue.27

In March 2019, as part of its reposition plan, Dollar Tree announced that it will close up to 390 Family Dollar stores along with renovating 1,000 other locations.28

2020s

On March 3, 2021, it was announced that Dollar Tree had quietly introduced a combination Family Dollar/Dollar Tree store concept, with the first one opening in early 2021.29 Dollar Tree has opened and operated nearly 50 locations by the end of 2020, primarily in small towns with populations of just a few thousand people.30

On September 28, 2021, CEO Michael Witynski, citing increased shipping and labor costs squeezing profit margins, announced that some prices will be rising above $1, possibly to as much as $1.50.31

On November 23, 2021, it was announced that Dollar Tree plans to raise its prices from a dollar for typical items to $1.25 in response to inflation and pressure from investors to raise prices. Some of the items sold at Dollar Tree will not have their prices increased. The retailer will introduce the new price point in more than 2,000 stores by December 2021 and complete the roll-out across most of its 8,000 stores by the first quarter of 2022.32

On March 13, 2024, Dollar Tree reported a loss of $1.71 billion for latest quarter and announced the closure of near 1,000 stores.33 On April 28, 2024, a tornado destroyed Dollar Tree's distribution center in Marietta, Oklahoma.34 Dollar Tree announced on May 28, 2024, that the distribution center would close, laying off almost all of its staff.35 On August 16, 2024, the dilapidated warehouse caught on fire.36

In December 2024, Dollar Tree announced that its Board of Directors appointed Interim CEO Michael C. Creedon, Jr. as permanent Chief Executive Officer. Creedon had joined Dollar Tree in 2022 as Chief Operating Officer and in November 2024 he was appointed Interim Chief Executive Officer, succeeding Rick Dreiling. Creedon has responsibility for leading more than 200,000 associates and more than 16,000 stores across the Dollar Tree and Family Dollar banners.37

In March 2025, the company announced the sale of the Family Dollar chain for $1 billion to Brigade Capital and Macellum Capital.38 The sale expects to complete in June 2025.39

Business strategy

Dollar Tree is classified as an extreme discount store.40 It claims to be able to achieve this because their buyers "work extremely hard to find the best bargains out there,” and it has "great control over the tremendous buying power at the dollar price-point.”41 Its prices are primarily designed to attract financially disadvantaged customers, but it has also become popular within immigrant communities.42

Family Dollar bidding

On July 28, 2014, Dollar Tree announced that a deal had been reached and approved by both parties to purchase Family Dollar for $8.5 billion plus acquisition of the $1 billion in debt currently held by Family Dollar.434445 The deal came in the month following activist investor and major shareholder46 Carl Icahn's demand that Family Dollar be promptly put up for sale.47 After their reported deal had been struck, Dollar General entered the bidding, surpassing Dollar Tree's offer, with a $9.7 billion bid on August 18, 2014.48 On August 20, 2014, Family Dollar rejected the Dollar General bid, saying it was not a matter of price, but concerns over antitrust issues that had convinced the company and its advisers that the deal could not be concluded on the terms proposed. The Family Dollar board had been analyzing potential antitrust issues that could arise from doing a deal with Dollar General, since the start of the year a statement from CEO Howard Levine outlined.49

Allegations of creating food deserts

Dollar Tree, and dollar stores in general, have been alleged by a number of studies, individuals, and organizations to proliferate food deserts: areas with limited access to healthy and affordable food.50515253 Dollar Tree has disputed this claim; it claimed that in a number of cases it created food options in food deserts.54 Dollar stores are alleged to outcompete local grocery stores, and end up being one of the few options available for purchasing food in some communities.5556 In 2023, Dollar Tree reportedly stopped selling eggs when the price of eggs increased.57 In line with these allegations, a number of states have passed restrictions on where new dollar stores can be opened.58

Canada

On October 11, 2010, Dollar Tree announced its acquisition of Dollar Giant, incorporated in 2001 in Vancouver, Canada, for $52 million.5960 At the time of the acquisition, Dollar Giant had about 85 retail outlets in British Columbia, Alberta, Saskatchewan and Ontario.61 Approximately 30 of its retail locations are in British Columbia, making it the second largest dollar store chain in that province. It was Canada's fourth largest operator of dollar stores. Dollar Tree has since rebranded all of its Dollar Giant stores to Dollar Tree; these were the first retail locations outside of the United States operated by Dollar Tree.

As of 2020, the company operates 227 stores across Canada, concentrated in Western Canada and Ontario. All Dollar Tree stores in Canada sell items for C$1.50 or mentioned otherwise which is usually less than C$2.62

Dollar Tree Canada's merchandising team is located in Mississauga, Ontario, while its corporate office remains in Burnaby in Greater Vancouver.63

Recalls

The U.S. Consumer Product Safety Commission lists several recalls for products sold at Dollar Tree stores. The recalled products include salsa jars with broken glass inside them, hot-melt mini glue guns (recalled in January 2008) which could short circuit and cause burns,64 and candle sets (recalled in February 2004) that could produce excessive flame.65

See also

Wikimedia Commons has media related to Dollar Tree.

References

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