~ Shared Back-Office Functions Created to Leverage Costs across Both
Banners ~
CHESAPEAKE, Va.--(BUSINESS WIRE)--
Dollar Tree, Inc. (NASDAQ: DLTR), North America's leading operator of
discount variety stores, today announced that, as part of its ongoing
efforts to integrate its support functions through a shared services
model, the Company will eliminate 370 positions, including 100 vacant
positions, at its Family Dollar store support center in Matthews, NC.
"This announcement represents another step in the process of integrating
our two large organizations," said Bob Sasser, Dollar Tree's Chief
Executive Officer. "Since completing our acquisition a year ago, we have
communicated our plans to utilize a shared services model, leveraging
our back office functions to support both the Dollar Tree and Family
Dollar business segments. These difficult but necessary actions will
enhance our ability to efficiently support our businesses, while
achieving our stated synergy targets. Our focus continues to be on
maximizing our operational efficiencies to drive tremendous value for
our customers, while creating long-term value for our shareholders."
"We will operate and grow both banners," Sasser added. "At Dollar Tree,
everything is $1 while Family Dollar serves as your neighborhood
discount store. To insure that we deliver value and the brand standard,
we plan to keep our customer-facing organizations separate and focused
on the individual banners. Specifically, store operations and
merchandising functions will remain largely unchanged. There are no
plans to include these functions in the shared services model."
The Company believes it is well positioned to achieve its goal of $300
million in combined run rate annual synergies by the end of its third
year following its July 2015 acquisition. These synergies will be
achieved through a combination of savings from sourcing and procurement
of products and services; banner optimization; corporate overhead; and
optimization of its distribution and logistics networks.
The Company expects to incur pre-tax expense of approximately $6 million
during fiscal 2016 related to the restructuring announced today for
one-time severance-related benefits.
Dollar Tree is scheduled to report its second quarter 2016 financial
results prior to the market open on Thursday, August 25, 2016.
About Dollar Tree, Inc.
Dollar Tree, a Fortune 200 Company, now operates more than 14,000 stores
across 48 states and five Canadian provinces. Stores operate under the
brands of Dollar Tree, Dollar Tree Canada, and Family Dollar. To learn
more about the Company, visit www.DollarTree.com.
A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains
"forward-looking statements" as that term is used in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
address future events, developments or results and typically use words
such as believe, anticipate, expect, intend, plan, forecast, or
estimate. For example, our forward-looking statements include statements
regarding the Company's integration plans, including changes in
operations, the elimination of positions, and the retention of certain
functions, and the benefits, results, and effects of such actions on
operational synergies, future financial and operating results and
shareholder value. For a discussion of the risks, uncertainties and
assumptions that could affect our future events, developments or
results, you should carefully review the "Risk Factors," "Business" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" sections in our Annual Report on Form 10-K filed March
28, 2016, our Quarterly Report on Form 10-Q filed June 9, 2016 and other
filings with the Securities and Exchange Commission. We are not
obligated to release publicly any revisions to any forward-looking
statements contained in this press release to reflect events or
circumstances occurring after the date of this report and you should not
expect us to do so.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160804005827/en/
Dollar Tree, Inc.
Randy Guiler, 757-321-5284
Vice President,
Investor Relations
www.DollarTree.com
DLTR-G
Source: Dollar Tree, Inc.
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