Cynthia Kuria
SMHM 3950
The Dollar Tree
Value Retailing
The Dollar Tree is simply a little touch of heaven in these tough economic times. Where else can
you find office, party and house supplies all each for one dollar (or even less)? The first Dollar Tree store
opened its doors in 1986 in Georgia, by the end of that year the company had opened five more stores!
The company now has over 4,000 stores in the 48 contiguous states as well as 86 in Canada. The
Company operates one dollar stores under the names of Dollar Tree and Dollar Bills. The Company also
operates a multi-price-point variety chain under the name Deal$. Dollar Tree has managed to become so
successful due to the fact that they are a customer-oriented and value-driven company. This value
retailer is a strong believer in attitude, judgment, and that is why Dollar Tree is the nation's leading
operator of single-price-point dollar stores and a fortune 500 company.
The Dollar Tree carries a broad mix of merchandise that includes national and regional brands.
In this bright, well lit, organized, and clean store you can find everything from house ware items to
health and beauty to toys to seasonal décor. Not only that, but you are guaranteed to spend no more
than one dollar on each item. The treasures you can find at this retailer compete with other dollar
stores and value retailers such as Big Lots. This retailer offers low prices plus additional benefits such as
quality and novelty that meet the needs of value-oriented consumers. In 2009 Dollar Tree expanded
even more by redesigning its website with a new e-commerce podium. DollarTree.com now sells their
merchandise in bigger quantities to individuals, small businesses, and organizations all still at that the
low dollar point price. The retailer also implemented a system online where customers can read and
write reviews on the company’s products, this is a way that they attempt to maintain a level of value.
The stores are located in high-traffic strip centers anchored by mass merchandisers, supermarkets,
malls, and in small towns. This value retailer manages to keep costs low by importing over 40% of their
merchandise from China. The chain is proud of the fact that they receive new items weekly and use that
to an advantage as a way of bringing customers back for more.
Not all has been smooth sailing with this unique retailer however. Rumors of cheap quality
items as well as numerous recalled items have left the retailer fighting for a positive view from the
public. Threats of bigger retailers such as Wal-Mart and Target beginning to sell single-price-point items
also threaten to completely shut down a company such as Dollar Tree even though the company has
only continued to rise in the market. Dollar Tree must work harder now to prove that they do sell the
the best quality items available so as not to lose the loyal customer base which they have already grown
to have. Ultimately the retailer will continue to be successful as long as they manage to continue to
grow as well as learn how to fight off the upcoming competition.