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Dollar Tree (DLTR) Ramps Up Hiring Ahead of Store Openings

Dollar Tree, Inc. DLTR revealed plans of hiring thousands of employees for Dollar Tree and Family Dollar stores as well as distribution centers across the United States. These vacancies include full and part-time managers at more than 15,400 stores along with flexible part-time positions for cashiers and stockers. Store managers at Dollar Tree and Family Dollar stores will be offered a monthly bonus as per performance.

Further, it is likely to hire full and part-time order fillers, equipment operators, maintenance and warehouse associates, and managers for its 26 distribution centers. The company is offering a total rewards package with competitive benefits for associates working in these distribution centers.

Additionally, all associates can rise through the ranks to take on management-level roles. Some other notable employee benefits include extra compensation through incentive pay depending on productivity and a pay-any-day program, wherein associates can opt for advance payday earnings in order to meet bills and other expenses.

This move is in sync with management’s plans to open 600 stores in fiscal 2021. Out of these, 400 stores will be Dollar Tree and the rest will be Family Dollar stores, consisting of both H2 and Combination Store formats. Moreover, the company remains on track to reach its long-term target of operating 26,000 stores, with more than 10,000 Dollar Tree and 15,000 Family Dollar outlets across North America. Additionally, the company is on track to leverage Family Dollar and Dollar Tree distribution center systems and combined merchandise. This will help in bringing the latest products into Dollar Tree stores without any disruptions.

Apart from store openings, Dollar Tree remains focused on store optimization via renovations, re-banners and closings. Speaking of store renovations, the H2 renovation program for its Family Dollar stores has been a key to improve store potential. The H2 stores are delivering more than 10% comps growth, on average, in its first year when compared with the non-renovated Family Dollar stores. Consequently, the company sees more potential for expansion of this format. Also, the Family Dollar segment has partnered with Instacart for H2 stores, which is well-received by customers.

Moreover, management announced a new Combination Store format, which was tested in nearly 50 small towns and rural communities during fiscal 2020 and has been performing well. At the Dollar Tree stores, the performance of Crafter’s Square offering, which was expanded to all stores across the United States in fiscal 2020, seems encouraging. As a result, the company plans to add Crafter’s Square to the remaining Dollar Tree stores in early 2021. Additionally, the expansion of the Dollar Tree Plus! initiative to 500 stores has been initiated.

We expect these endeavors to drive revenues in the near future. In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 3.9%, outperforming the industry’s growth of 1.2%.

Stocks in the Retail Space

Abercrombie & Fitch ANF has a long-term earnings growth rate of 18% and currently, a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

L Brands LB currently has a long-term expected earnings growth rate of 13% and a Zacks Rank #1.

Tapestry TPR, with a Zacks Rank #2 (Buy), has an expected long-term earnings growth rate of 10%.

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