Dollar Tree plans to develop freezers and coolers to accommodate extra meals and beverage merchandise, and likewise intends to add grownup drinks to its choices in 2019, firm executives mentioned on March 6. But the firm additionally expects to speed up its tempo of retailer closings in the course of the yr.
“In fiscal 2019, at Family Dollar, we plan to full a minimum of 1,000 retailer renovations and 200 rebanners,” Gary M. Philbin, president and chief government officer of Dollar Tree, Inc., mentioned throughout a March 6 convention name with analysts. “We are additional accelerating retailer closings and count on to close as many as 390 underperforming shops. And due to age, format, location, unfavorable lease phrases or different elements, (they) should not anticipated to present an ample return on funding for the price of renovation. Final variety of precise shops closures might be affected by ongoing lease negotiations.”
Dollar Tree mentioned it usually closes round 75 shops a yr.
Kevin S. Wampler, chief monetary officer, mentioned the corporate expects fiscal 2019 consolidated capital expenditures to whole roughly $1 billion. The expenditures might be targeted on 350 new Dollar Tree shops, 200 Family Dollar shops, 1,000 Family Dollar renovations and 200 rebanners from Family Dollar to Dollar Tree. Mr. Wampler mentioned expenditures additionally will embody the addition of frozen and refrigerated functionality at 500 new and present Dollar Tree shops and 400 Family Dollar shops, in addition to the addition of grownup drinks to 1,000 shops.