| DOLLAR TREE STORES, INC. CELEBRATES 1000TH STORE OPENING REDEFINES THE EXTREME VALUE RETAIL CATEGORY CHESAPEAKE, Virginia -- July 15, 1998 -- Dollar Tree Stores, Inc. (Nasdaq:DLTR), the nation's leading "everything's a dollar" store, is celebrating the opening of its 1000th store this summer. The publicly owned corporation has grown from three stores in 1986 to a chain which will soon operate 1000 stores in 28 states, and is redefining the extreme-value retail category. Dollar Tree sales topped $635 million in 1997. The chain is positioned for growth, with plans to continue expanding at a rate of 20 percent per year, opening additional stores in existing markets and new cities.According to Macon Brock, Jr., President and CEO, "Our goal is to be the five-and-dime of the new millennium, a store where people know they can find a variety of first quality merchandise at the lowest price. Our success comes as a result of our focus on buying quality merchandise that we know our customers want." Fortune magazine recently included Dollar Tree Stores in an article on extreme value retailers, calling it "one of today's hottest stocks." The article cited this market segment as the last growth area in retailing. Dollar Tree entered the public market in March, 1995. Within six months, the stock price had doubled. Three years after the first offering, the price of Dollar Tree stock has increased eightfold, with a close on June 30, 1998, of 40 5/8. Value retailers are traditionally able to offer low prices as a result of purchasing close-out or over-run merchandise. However, Dollar Tree's experienced buyers prefer to scour world-wide markets for top-tier and specially manufactured merchandise, cutting out costly middlemen by importing directly. They also take advantage of high-volume purchasing power resulting from the cost efficiencies of supplying 1000 stores. Dollar Tree has built an efficient, high-tech distribution system that gets products into stores quickly. A new 400,000-square-foot Store Support Center, which opened in Chesapeake, VA this year, uses a computerized inventory system to track merchandise at every point from receiving to delivery, reducing errors and controlling shrinkage. The "pick to belt" system allows employees to label cartons and place them on conveyor belts where they are sorted electronically and routed to trailers for shipment. The company's Memphis distribution center will be replaced in early 1999 with a similarly automated center in DeSoto County, MS. The company clusters new stores around distribution centers to improve efficiency. Dollar Tree Stores are typically located in strip shopping centers, near larger discount store chains and popular grocery stores. Unlike other extreme value retailers, who often use stacked cartons for merchandising, Dollar Tree Stores maintain neat bins and display units with similar merchandise grouped together. The focus on quality merchandise and attractive merchandising appeals to middle-income customers, in contrast to competitors, who target fixed and lower income markets. The merchandise mix in Dollar Tree Stores includes housewares, food, health and beauty aids, party goods, stationary, hardware, gifts, and books. Specialty holiday and seasonal goods comprise 13 percent of their merchandise. The company's formula for success includes quality merchandise, direct importation of products, efficient distribution, convenient locations, neat and attractive stores, and a commitment to customer service. |
DOLLAR TREE STORES, INC. CELEBRATES 1000TH STORE OPENING REDEFINES THE EXTREME VALUE RETAIL CATEGORY
DOLLAR TREE STORES, INC. CELEBRATES 1000TH STORE OPENING REDEFINES THE EXTREME VALUE RETAIL CATEGORY