What doesn't make sense to me is the CEO of Dollar Tree said that Dollar Tree has been doing so well so he wants to do something different in order to evolve.
However,
“The Dollar Tree banner has one of the most unique, differentiated and defensible brand concepts in all of value retail,” the company notes. “The one-dollar fixed-price point has been a critical element of Dollar Tree’s success, generating deep customer loyalty and strong historical performance.”
The way I see it is Dollar Tree bought Family Dollar so why try to combine?
Now Family Dollar is ailing and Dollar Tree will close up to 390 Family Dollar stores this year turning some 200+ Family Dollars into Dollar Trees during 2019.
They say they have no plans to go up in standard price for the entire store, but this still makes me nervous.
If it ain't broke don't fix it. People go to Dollar Tree because it's the ONLY $1 for everything store. You will have to re brand & then compete with every other "dollar" store out there. You corner your market as is. I always hit Dollar Tree first before I shop anywhere else for non-food items. If they continue this or if, God forbid, change their stores to have differentiating prices, they will no longer have my loyalty.
If you wanna evolve, keep evolving in your design style. all the cute new items that remind me of the Target Dollar Spot. Evolve by bringing in new buyers & stylists. Make it hipper by changing the look of the store & marketing.
What do ya'll think about this Dollar Tree Plus experiment?
What is your favorite "dollar" store?
