Dollar Tree’s Sales Square Feet by Segment (2016-2019)

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This statistic highlights Dollar Tree’s Sales Square Feet by Segment starting from Q1 of 2016. Click here to know more about the statistic.
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This statistic highlights Dollar Tree’s Sales Square Feet by Segment starting from the Q1 of FY 2016.

Dollar Tree is an American chain of discount variety stores that sells products for $1 or less. Dollar Tree Stores Inc. was earlier known as Only $1.00. It operates 15,115 stores throughout 48 states in the U.S and Canada. They also operate a multi-price point variety chain under the name Family Dollar. Each Dollar Tree store stocks a variety of items including national, regional, and private-label brands. It is headquartered in Virginia and is a Fortune 500 company. It was established in 2014.

Departments found in a Dollar Tree store include health, beauty, food, party, seasonal décor, houseware, glassware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft and teaching supplies, automotive parts, electronics, pet supplies, and books. Most Dollar Tree stores also sell frozen foods and dairy items.

Sales per square foot have been an important measure of success in the retail industry. It is the average revenue earned for every square foot of sales space utilized. It is calculated by dividing total sales revenue over a period of time by the total square footage of retail space available. A higher number is considered a sign of greater efficiency.

Dollar Tree operates in two business segments – Dollar tree that offer merchandise at a fixed price of $1 and Family Dollar which provides customers with a selection of competitively priced products. The dollar tree stores predominantly range from 8000-10000 sq. feet and the family dollar stores range from 6000-8000 sq. feet.

As of the second quarter of 2019 Dollar tree’s revenue was about $5.74 billion. Dollar tree’s selling per square feet has been increasing at a constant rate over the last 3-4 years. It has also been increasing quarter on quarter.

In the first quarter of 2018 the sales per sq. ft from dollar tree stores was $57.9 million which increased to $58.70 million in the second quarter, $59.6 million In the third quarter, and $60.3 million in the last quarter. This trend continued in 2019 with first-quarter sales per sq. ft increasing to $61.2 million and $62.9 million in the second quarter. Dollar tree stores have been consistently improving their sales per sq. feet numbers over each quarter.

Their other business segment Family Dollar started 2018 with $59.7 million sales per sq. ft in the first quarter, went up to $59.80 million in the second quarter and $59.9 million in the third quarter after which the numbers started declining. The last quarter of 2018 saw sales per sq. ft fall to $59.80 million. This downward trend continued into 2019. Quarter 1 2019 figures went down to $ 59.20 million and dropped further in the second quarter to $56.80 million. The falls in the Family tree numbers are not a major cause of worry to the firm since the numbers have been fairly consistent over the years and the downtrends are relatively small.

Management at Dollar tree expects sales to grow in the coming quarters and expect to earn around $22 billion in 2019 and $24.1 to $24.6 billion in 2020. Owing to Dollar Tree’s impressive performance each quarter these numbers look achievable and being a consumer-centric firm, we can expect the sales to rise in the coming years.

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