Dollar Tree Logistics Case Study
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Dept. of Management
Dollar Tree Logistics
Company Background Dollar Tree Stores, Inc. is the largest retailer among low-price convenient variety stores in the United States. Placing all of their merchandise at the one dollar or less price range, the company’s stores offers a wide variety of general goods, including food, housewares, health and beauty products, hardware, cleaning supplies, and many other consumer items. As of 2004, Dollar Tree had over 2,500 stores operating in 47 states. Because of its purchasing power – buying products in huge quantities, Dollar Tree is able to provide its customers a wide variety of products for just one …show more content…
At the end of 1992, the company had grown to a total of 256 stores. Net sales grew from $71.1 million to $120.5 million.
In 1996 Dollar Tree acquired its first competitor, Dollar Bill$, Inc, a Chicago-based chain (adding 106 stores). On December 10, 1998, it acquired 98-Cent Clearance Centers located in California (adding 70 stores). In 1999, Only $One stores based in the state of New York was acquired (adding 24 stores). In 2000 it acquired the Philadelphia-based company Dollar Express, (adding 106 stores). Finally, in 2003 Dollar Tree Acquired Greenbacks, Inc., based in Utah (adding 100 stores). By the end of 2004, dollar Tree had had over 2.600 stores across all 48 states of the continental United States, generating an annual revenue of $3.2 billion.
Distribution Centers By the end of the 2004, Dollar Tree had a total of 8 Distribution Centers (DCs) in operation with a total combined operating surface of 5.4 million square feet. On Average, each DC served around 300 stores. Dollar Tree opened its first DC in 1997, located in Chesapeake, Virginia. Out of the nine DCs, seven were automated. In 1998 Dollar Tree built its first automated DC in Chesapeake, Virginia. Location for the distribution centers is based on population density and center of gravity.
Stores At the beginning dollar tree operated its stores inside shopping malls. The size of the stores ranged from 1,500 to 2,500