Additionally, Dreiling said Dollar Tree would expand the number of cooler doors in its stores, adding 16,000 this year with the goal of having 30 doors per store. This will increase space to accommodate more frozen and refrigerated items, the CEO said.
Both Dreiling and Jeff Davis, Dollar Tree’s chief financial officer, on the call said the strategy was part of Dollar Tree’s efforts to continue to widen the gap in price between it and drug, convenience and grocery stores.
Consumers have increasingly turned to dollar stores in search of better value in numerous categories, but especially grocery amid economic pressures and inflation, as Retail Leader Pro recently explained. According to Coresight Research, one in five shoppers in the U.S. buy groceries at a dollar store.
“Dollar stores provide consumers in retail deserts with expanded options at affordable prices, and at a time when the bifurcation of consumers’ socioeconomic status widens, they’re uniquely positioned to attract new buyers,” said Elizabeth Lafontaine, chief analyst for Retail Leader Pro.