DOLLAR TREE, INC. (DLTR)

Dollar Tree is a leading operator of retail discount stores under the Dollar Tree and Dollar Tree Canada banners. It now operates as a standalone banner following the July 5, 2025 sale of the Family Dollar business to 1959 Holdings, LLC, which generated approximately $793 million in total cash, including about $680 million of net proceeds. Family Dollar is reported as discontinued operations, and the description here reflects continuing operations only. Its strategy centers on an expanded and more relevant assortment, agile cost management, a more connected in-store customer experience, new store growth, improved store conditions and operations, and an evolving supply chain.

At January 31, 2026, the company operated approximately 9,000 stores across 48 states and the District of Columbia, plus approximately 275 stores across seven Canadian provinces. Stores typically range from 8,000 to 10,000 selling square feet and carry about 8,400 items. Merchandise falls into consumables (household paper and chemicals, food, candy, health and personal care, and frozen and refrigerated food in most stores) and discretionary goods (variety items such as toys, housewares, gifts, stationery, party goods, greeting cards, softlines and crafts, plus seasonal goods). The company offers nationally advertised brands and a growing private-label assortment. Closeout and promotional merchandise makes up less than 10% of purchases. In addition to its $1.25 price point, it is expanding multi-price offerings, and Canadian stores generally sell items for $1.75 (CAD) or less.

Dollar Tree serves customers across a broad range of income levels, principally in suburban locations. It emphasizes convenience, value and a "thrill-of-the-hunt" experience built on new celebratory and seasonal items each week. Customers can also get same-day delivery through Instacart from more than 8,400 stores and through Uber Eats from over 8,800 stores. Marketing focuses on driving store traffic through digital targeting, social influencers, web and app experiences, and in-store signage. Canadian revenue and assets are not material.

The company buys primarily on an order-by-order basis, with no material long-term purchase contracts, and no vendor accounted for more than 10% of purchases. About 40% of retail value purchases are imported directly, with China the source of the vast majority of direct imports. It is mitigating tariff and inflation pressures by renegotiating supplier terms, re-engineering products, shifting countries of origin, discontinuing weaker items and adjusting retail prices. It operates 16 distribution centers in the United States, which supply about 90% of store inventory, while third-party facilities in British Columbia and Ontario serve Canada. About 40% of items are automatically replenished, and the rest are allocated to stores or delivered directly by vendors. The company is expanding and modernizing its distribution network, including a rebuilt Marietta, Oklahoma center due by spring 2027 and a 1.25 million square foot center near Phoenix, Arizona expected to open in spring 2026.