CHESAPEAKE, Va. — Dollar Tree Inc. is expanding its Snack Zone concept based on a test program’s early success in driving incremental sales.
The retailer tested the initiative at selected stores earlier this year. More than 200 Dollar Tree stores had a Snack Zone on May 5, the last day of the retailer’s fiscal first quarter.
In an earnings call with investors, Dollar Tree president and chief executive officer Gary Philbin said the company intends to expand the concept to 750 stores in fiscal 2018.
“The Snack Zone is designed to provide customers with a compelling assortment of immediate consumption products at the dollar price point to drive incremental sales,” Philbin said. “Our customers are excited with the introduction of the Snack Zone, great values across categories of cold beverages, candy, snack cake, salty treats and other favorites that bring our customers back to those treats that they crave. We’re excited about these incremental sales and additional foot traffic that they generate in the stores.”
Candy, snacks and beverages were among top-performing categories at Dollar Tree stores in the first quarter. Beauty, eyewear, health and personal care were also strong categories in the period, the company said in reporting an 8.3% increase in revenue at the Dollar Tree bannner. Revenue at the company’s Family Dollar stores increased 2% in the quarter.
“Our sales performance was very balanced, with discretionary slightly outperforming consumables,” Philbin told analysts.