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Dollar Tree Updates Store Optimization Program

Dollar Tree Inc. (DLTR) provided store optimization program update. It also reported that its Enterprise same-store sales for the first quarter ended May 4, 2019 increased 2.2%. Same-store sales for the Dollar Tree banner increased 2.5% on a constant currency basis or 2.4% when adjusted to include the impact of Canadian currency fluctuations. Same-store sales for the Family Dollar banner increased 1.9%.

As previously announced in March 2019, the company said it is currently executing a store optimization program for its Family Dollar stores. The company plans to re-banner about 200 Family Dollar stores to the Dollar Tree brand in fiscal 2019.

The company entered fiscal 2019 with about 200 H2 stores and, as of May 4, 2019, had approximately 550 H2 stores. The company plans to renovate at least 1,000 stores in fiscal 2019.

The company noted that it is taking action to close under-performing stores. The normal cadence of Family Dollar store closings on an annual basis is approximately 75 stores. In fiscal 2019, as previously announced, the company expects to close as many as 390 stores, the majority of which will take place in the second quarter.

In addition, the company 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. In the first quarter, adult beverage product was added to approximately 45 stores and freezers and coolers were expanded in approximately 55 stores.

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