DOLLAR TREE, INC. (DLTR)

Dollar Tree, Inc. is a leading operator of discount variety retail stores operating under the Dollar Tree, Family Dollar and Dollar Tree Canada brands, with 16,077 stores across 48 U.S. states and five Canadian provinces as of January 29, 2022. The company operates in two reporting segments, Dollar Tree and Family Dollar, executing a dual-banner strategy to serve customers across various geographic markets. The Dollar Tree segment (8,061 stores) offers merchandise predominantly at a fixed price point recently raised to $1.25, targeting suburban, broad-income customers with a mix of consumable, variety and seasonal merchandise, supported by 17 distribution centers (15 U.S., two Canada) and initiatives like Dollar Tree Plus ($3-$5 price points) and Instacart delivery from nearly 7,000 stores.

The Family Dollar segment (8,016 stores) sells merchandise priced from $1.00 to $10.00, targeting lower-income urban and rural customers, supported by 11 distribution centers, with growth initiatives including the H2 format (about 3,815 stores) and Combo Store format (over 240 stores) that incorporate Dollar Tree elements, plus Instacart delivery from over 6,000 stores. The company sources roughly 57-59% of Dollar Tree merchandise domestically and imports the rest, while Family Dollar purchases about 14% of merchandise through McLane Company and imports about 16% directly; no single vendor accounts for more than 10% of total purchases. The company operates 26 U.S. distribution centers, with an expansion planned for its Ocala, Florida facility by 2024, and faces high competition from dollar stores, mass merchandisers, online retailers, drug stores, convenience stores and grocery chains, with low barriers to entry in the sector.

The business is subject to various local, state and federal regulations that have not materially affected capital expenditures, earnings or competitive position. As of January 29, 2022, the company employed more than 210,500 associates (61,886 full-time and 148,679 part-time), supported by human capital programs covering competitive pay and benefits, health and wellness resources, talent development, diversity and inclusion initiatives, workplace safety programs, and associate engagement efforts, including COVID-19 related protective measures implemented since 2020.