The wow factor has added charm to Family Dollar stores.
Dollar Tree is on a renovation spree on its 1,000 stores. With the facelift, Dollar Tree has been able to perform more than expectations.
Earnings and revenue have picked up and same-store sales have gone up by 2.4percent, though analysts had expected a gain of just 1.4 percent.
The “wow” factor has added almost $2billion increase in the company’s cash flow, says CEO Gary Philbin. He says that the amount invested on renovation was $1 billion and it has paid off well.
The company in an innovative method to surprise its customers has brought in a few wow items into their stores. The chief among them is the price point which customers are very happy about, says the CEO.
Dollar Tree will be introducing adult beverages in its 1,000 stores. It will also be expanding its coolers and freezers in 400 stores. The company has plans to add $1.00 Dollar Tree products to these stores.
As part of its plan to bring down debts, Dollar Tree Inc has plans to shut down about 390 stores of Family Dollar. The company was acquired in 2015 by Dollar tree for an amount of $8.5 billion. However, Family Dollar has not been able to perform well and continued to show a loss. In the fourth quarter, 84 stores were closed.
With the closure of the Family Dollar stores, Dollar Tree will be able to outperform and gain profits, feel investors.
With the renovation, the company has witnessed better sales performance, and improvement in its operational performance, especially in those stores that come under the Dollar Tree rebanner.
Customers welcome the renewal in the stores and prefer the great looking store, with attractive products and wow items.
Though share prices are a bit positive, they are 3 percent lower, when compared to prices of last year.