Dollar Tree Completes POS, Merchandising Installations for Holiday

Technology is a key area of focus for discount retailer Dollar Tree, according to President and CEO Bob Sasser. In a call discussing second quarter results, Sasser discussed how the company is completing the installation of point-of-sale and merchandising systems. Additionally, Sasser gave insight into how the company is leveraging its increased online and social customers after a boost in web traffic in Q2.
"The installation of store level POS and enterprise level merchandising systems will be complete in the third quarter ahead of the holiday season," says Sasser. "These integrated systems drive purchasing, allocations, sales data and vendor management."
In the call, Sasser also reported that Dollar Tree is working on aggressive expansion in Canada, after acquiring 86 Dollar Giant stores in the country and announcing plans to expand the store count by 15% to 20% this year. Over the long term, Sasser announced that the company plans to open up to 1,000 Dollar Tree stores in Canada.
The new POS and merchandising systems "also tie our Canadian logistics with our Warehouse Management System in the U.S.," says Sasser. "Once complete, the Canadian operation will be on an identical platform to the merchandising and sales engines that drive the U.S. stores, resulting in the Canadian stores benefitting from higher value merchandise and more efficient and streamlined deliveries of merchandise to their stores."
On the online front, the company's e-commerce business, Dollar Tree Direct, experienced an increase of 38% in website traffic compared to the same quarter the previous year. Its online inventory has also increased to "now offer more than 2,200 items online, including many great seasonal items," says Sasser. "Dollar Tree Direct continues to gain new customers."
In addition to gaining new customers on its website, Dollar Tree's social media footprint is expanding as well. "There are now more than 100,000 Dollar Tree loyalists interacting with us on Facebook and Twitter," says Sasser. "We're leveraging this web traffic to communicate the Dollar Tree value message. Dollar Tree Direct provides a channel with a huge potential to serve more customers, expand the brand and increase sales and profits. We are gaining customers every quarter and I’m pleased with the progress."
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