Dollar Tree Brings Alcohol to More Sites

1,000 stores earmarked for product expansion this year
Photograph: Shutterstock

CHESAPEAKE, Va. — Dollar Tree added beer and wine to 45 of its Family Dollar stores in the first quarter of 2019, and many others are on the way.

In its first-quarter report, the company said it “plans to add adult-beverage product in approximately 1,000 Family Dollar stores and expand freezers and coolers in approximately 400 Family Dollar stores in fiscal 2019.”

“Dollar Tree continues to be a destination for customers looking for great values and convenience,” said Dollar Tree President and CEO Gary Philbin.

The product update is part of the company’s H2 remodeling project, intended to improve performance in the stores.

“The company is rolling out a new model for both new and renovated Family Dollar stores, referred to as H2,” the company said. “The H2 model has improved merchandise offerings, including Dollar Tree $1 merchandise sections, an expanded party assortment and an expanded number of freezer and cooler doors.”

Dollar Tree tested the H2 concept last year with positive results.

These stores “are delivering increased traffic with average comparable store sales increases of greater than 10%,” the company said. “H2 stores perform well in a variety of locations and especially in locations where Family Dollar has been most challenged in the past.”

Chesapeake, Va.-based Dollar Tree entered fiscal 2019 with approximately 200 H2 stores and, as of May 4, had approximately 550 of these remodeled sites. The company plans to renovate at least 1,000 stores in fiscal 2019.

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