Dollar Tree pilots fresh produce

Deep discounter Dollar Tree, famous for its $1 for everything in the store discount positioning, is piloting a new store format that includes fresh produce.

The Chesapeake, VA-based company’s new Dollar Tree Plus! format has been added to a total of 280 stores in Colorado, Georgia, Alabama, Louisiana and the Carolinas, and offers a multi-price assortment closer to the company’s Family Dollar division. Dollar Tree is aiming at a 500-store target for the format this year, said president and CEO Michael Witynski, during the company’s earnings call held May 21.

“The newest generation is seeing sales lift of more than double prior versions, which is why it’s been so important for us to evolve and refine before a larger rollout,” Witynski said.

The fresh produce tests at Dollar Tree follow the company’s rollout of fresh produce at select Family Dollar stores, which has been a strong performer for the company.

“We continue to see encouraging results for stores that added fresh produce and frozen meats to their assortment in late 2020,” Witynski said. “We are seeing materially higher average tickets when a basket contains produce or meats. I am excited to share that we will continue to expand on this initiative in 2021 and beyond.”

Fresh produce has been a boon to deep discounters over the past several years. Dollar General plans to have fresh produce in about 1,700 stores by the end of the year.

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