New POS, Merchandising Systems to Improve Allocation at Dollar Tree

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New POS, Merchandising Systems to Improve Allocation at Dollar Tree

11/21/2011
Dollar Tree has completed its installation of new point-of-sale and merchandising systems, providing the chain with sales data that is critical to improved planning, allocation and replenishment efforts.

"Systems and equipment have been installed and stores have been trained," reported Dollar Tree CEO Bob Sasser during a recent conference call discussing Q3 financial results. The new systems will improve the chain's visibility into its inventory and provide a trailing sales history by store and by SKU, "key factors in the management of an efficient supply chain and improving customer satisfaction," he added.

The retailer is seeking to create more localized inventory assortments at its 4,300-plus stores. "We've gotten better with looking at stores as far as clustering them and determining¼what inventory categories are going to be important store-by-store," said CFO Kevin Wampler. "A lot of it is technology that we've been able to implement and continue to gain efficiencies with.

"We've had less inventory for the past two or three years now, and really it has not hurt our sales at all," he added. "So it really does show that you can gain these efficiencies and not hurt your sales."

Dollar Tree has shown continued growth this quarter: sales increased 11.9% over the same period last year to $1.6 billion, and comp store sales climbed 4.8%.

Year-to-date, Dollar Tree has added 257 new stores and expanded or relocated 88 units, ending Q3 with 4,335 stores. The retailer also expanded its Savannah, GA distribution center from 600,000 square feet to one million square feet, a capital expenditure of $19.5 million.

Dollar Tree Direct, the retailer's e-commerce business, is also expanding its offerings. Customers can now purchase smaller quantities on over 600 online items while the site continues to offer more than 2,500 items for sale by the case, said Sasser. He added that there is now a Spanish-language version of the website and that Dollar Tree Direct is also now available to mobile users.

For related content: Dollar Tree Completes POS, Merchandising Installations for Holiday