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Dollar Tree Opens Test Kitchen and Delivers Sales of 7.7B in Q4 Earnings Report; Rick Dreiling Shares

Dollar Tree Opens Test Kitchen and Delivers Sales of 7.7B in Q4 Earnings Report; Rick Dreiling Shares


CHESAPEAKE, VA
Tuesday, March 7th, 2023

Release the test kitchens! This was Dollar Tree’s rallying cry in its fourth quarter financial report, in which it outlined $7.72 billion in sales, which is an increase of 9 percent. Another highlight from the report is that Dollar Tree is trying out a new test kitchen to explore and redefine labels for its portfolio.

Rick Dreiling, Chairman and Chief Executive Officer, Dollar Tree“We have an exceptional team assembled, and I cannot overstate the amount of positive transformational change occurring in this business,” Chairman and Chief Executive Officer Rick Dreiling commented. “We are committed to enhancing store productivity as we focus on developing our people, tools, and technology to fuel accelerated growth. And that we do this while simplifying operations, improving the supply chain, and innovating our merchandising strategies to better support our associates and to better serve our shoppers.”

Some key financial takeaways include:

  • Enterprise growth of 7.4 percent
  • Operating income of $618.1 million
  • Same-store sales growth of 8.7 percent

According to the release, the company is accelerating and pulling forward its schedule of major high-returning investments. The cost of these investments is reflected in its 2023 outlook, as an incremental $430 million increase in SG&A, and the outlook assumes only a minimal return from these investments.

In a push to increase grocery sales, Dollar Tree has announced the opening of a new test kitchen to help expand its product portfolio

“We also made additional investments in store hours and coverage, investments in our field labor and managers, and other areas to help us execute much better,” continued Dreiling. “Separately, we have been aggressively expanding our $3, $4, $5 frozen and refrigerated product across the Dollar Tree store base going from 0 to 3,500 stores in 2022.”

Along with the price transition from $1 to $1.25 the retailer previously enacted, Dollar Tree has begun to look toward providing more food items for its shoppers by expanding the number of cooler doors with plans to add 16,000 doors in 2023 to accommodate more frozen and refrigerated items. Dollar Tree will also be developing new and redefined labels in its new test kitchen, located in Chesapeake, Virginia.

To learn more about the company’s earnings and investments, click here.

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