Dollar Tree Analysis Essay

Improving the store internally with more resourceful employees, better lighting and displays, and more organized floor plans will start to change the image of Dollar General that the average public holds. A more respectable store will lead to an increase in customers. Dollar General will then begin developing a system of a more sustainable competitive advantage among the small and large firms of the similar industry.

With continuous improvement , the business is increasing at a steady rate. The firm’s goal was

The daily routine at Dollar Tree Inc. is very basic and is usually minimally manned. Problems such as stray items, wrong inventory and cash drawer mismatch arise due to employees not having the proper training.

Walmart Stores, Inc. (NYSE: WMT) branded as Walmart since 2008 and Walmart before then, is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. It is the biggest private employer in the world with over 2 million employees, and is the largest retailer in the world. Walmart operates retail stores in various formats around the world and is committed to saving people money so they can live better and more comfortable. Walmart earns the trust of their customers every day by providing a broad assortment of quality merchandise and services at everyday low prices, while fostering a culture that rewards and embraces mutual respect, integrity, and diversity. The company is

If we analyze Dollar Store, we will see that it has established over 140 stores across Canada since its inception in 1998. As it has been considerably increasing its market reach across Canada; they are considered a direct competitor to Dollarama. On the other hand, Great Canadian Dollar stores are extending their reach in eastern Canada. Additionally, they are very present in the community by offering both charitable and communal support. At last, Dollar Tree is a growing chain of discounted retail stores in the United States. It operates over 4400 retail stores in 48 states of the US and in Canada. Thus, they are ready to expand their customer base into Canada. Also, Dollar Tree offers a much broader range of products compared to Dollarama, for example frozen foods and dairy items. As such, there is a very high competition in the discounted retail stores industry. However, in such a high competitive environment, Dollarama is still able to open over 150 stores in the past four years only. Also, considering their stock trend, their share price had increased from 25$ to 56.90$ per share in only one year. That represents a growth of 128% in a single year. We can conclude that their shares are in demand in our current market environment. Thus, we can assess that they are very well positioned in today’s competitive environment.

According to Gibbens, Robert. The Gazette, he states that, past 20 years Dollarama Inc. and chief architect have built 721 unit of national retail chain exceeding $4 billion market value from a small discount store in Matane in Quebec’s Gaspe region. As per the article Rossy open his first store in Montreal in 1992 and was the head buyer besides being the chief executive. “Rossy also innovated on the buying side, cutting deals with the manufacturers, not the distributors that most retailers deal with. He scouted out competitive retailers for items worth $5 and $10 that his suppliers could copy for him to sell for a Lonnie. This enabled Dollarama to offer higher-quality $1 merchandise than most of its competitors, while offering a

The internal analysis is very important in a company. Just like the external analysis, both of these analysis help to determine strategies. The Internal analysis involves the strengths, weaknesses, opportunity and threats of a company (Pearson, 2014). Dollar Tree has many strengths but they also have some weakness too. If Dollar Tree would use the data that they have from their internal analysis they could turn a lot of their weakness into strengths. But we will talk about their weaknesses later. The more strength a company has the better. One of Dollar Tree’s strengths would be that they acquired Family Dollar in 2015. This is a huge strength for Dollar Tree. Dollar Tree has many opportunities to overtake the dollar store market. They only need to keep inquiring their competitor’s stores. Strength for Dollar Tree is their strong financial performance. They are the largest dollar store in the market. Dollar Tree has a $15.5B Annual net sale that grew to 80.2% in 2015 and exceeded $15 billion for the first time in Company history. Now to Dollar Tree’s weaknesses, this would be their low inventory turnover ratio. In 2016, Dollar Tree reported that their inventory turnover ratio was 3.8 (Canadean, 2016). This is a high number. This is saying that they have more than enough of inventory in store that is not being bought by their customers. This is really money that is setting in their warehouse or stockroom and it just sitting and is not being used. This is bad for Dollar Tree.

The Dollar Tree Cooperation provides inbound, import, domestic transportation and outbound transportation services to 48 locations in the United States and five locations in Canada (Dollar Tree Inc., 2014). Using 10 distribution centers, the Dollar Tree is

This analysis contains references to years 2010 and 2009 for Dollar General Corporation, which represent fiscal years ended January 28, 2011 and January 29, 2010 respectively. The main issues which the company is concerned about are its ability to increase sales and profitability and reduce costs in the current economic situation; another issue is an ability to repay an extensive amount of long-term debt which increases its risks.

to see where the company is now with the use of a brief Swot analysis.

“The key elements of Costco strategy are extremely low prices, a limited selection of naturally branded and private label products, a treasure hunt shopping environment, strong emphasis on low operating costs, and ongoing expansion of its geographic network of store locations.” To provide low prices Costco caps its markup on brand merchandise at 14% compared to 20% to 50% at other supermarkets. The equals out to a sales revenue that only equales several million dollars. This number excludes all other operating factors including the membership fees. Another important element of the strategy is that unlike other retailers they don’t offer window displays or any other thrills with in the stores. They know because of the reputation and because of the value that they offer their customers that the items that they sell offer value over all else.

The Dollar Tree brand of stores has been around since 1986, when Douglas Perry, Macon Brock, and Ray Compton founded the chain as a compliment to their other business, K & K Toys (Parnell, 2014). Through the years, Dollar Tree has acquired several different dollar store and low-end retail chains to grow their business to over 4000 stores (Shetty, 2010). One of the first and most strategic moves that the company made was to shift away from carrying closeout merchandise and to become more of a traditional variety store with a wide variety of basic goods all priced at a dollar or less. To accomplish this change, the chain had to discontinue their current purchasing strategies and had to begin buying directly from manufacturers to change the type of merchandise that they had available for consumers. The second major strategic move involved changing the location of where stores are usually located. Up until this point, the stores had been being in enclosed malls. With this change,

Costco is the best cost provider in the wholesale club category and the strategy is associated with Costco’s capabilities and resources, which includes; a streamlined supply chain, good supplier relationships, purchasing power, high sales volumes, quick inventory turnover, and excellent customer service. The three vital components of the company strategy are low pricing, limited product selection and high-end products acquired in closeouts and liquidations. While Costco strives to beat the competitors pricing, it also delivers exceptional value in its high-end offerings and customer service, giving consumers more for their money. Given its customers are the most affluent of all the warehouse clubs, with average incomes around $75,000 and this strategy works well for Costco. However, these customers are conscious not only about money but also value for the product, this fact is supported by the members who choose for executive

 Illustrates low prices and at the same time, not portray a cheap image to consumer.

The respect and care Dollar General gives to the customers and employees comes back to benefit them in their revenue. Dollar General gives the customer a cheap reliable product and distributes it through stores that are local and convenient; convenience and price is where they win. At Dollar General they research and battle daily to provide the cheapest prices in the business at our stores. Not only are the prices cheap, but they are made easy for the customers when shopping. Customers can find the prices of all the products in even increments. This makes it easy for the customers when adding up totals and figuring out taxes. Another convenient aspect of our stores is the size. On average a Dollar General store will be about 6,900 square feet. This allows the customer to get in and out of the store as quickly possible and get on with their day. In fact the average shopper at Dollar General will have completed their shopping, paid, and out the store within 10-20 minutes. This can be compared to a customer going into Wal-Mart shopping for the same goods would spend around 55 minutes in the store. Our last strength would be the products. Dollar General is designed