The Dollar Tree, which has done well during the recession and lagging recovery with its $1 or less pricing strategy, has decided to add another weapon to its retail strategy.
Starting Sunday, the discount retailer will start accepting coupons at its 4,000-plus U.S. locations.
"We're rolling it out to all of our stores," said Timothy Reid, vice president of investor relations for Dollar Tree, which is based in Chesapeake, Va.
Reid said the move to accept coupons is another way for the company to attract customers, not a move to replicate competitors Dollar General and Family Dollar.
"It's one more service, if you will, to our customers that hopefully makes us more attractive. It's purely our decision on how we want to offer value to our customers," Reid said.
The company, which has marketed itself to budget-conscious middle America, earlier this month released impressive second-quarter earnings.
Net sales increased 10.5 percent to $1.7 billion from $1.54 billion a year ago. Sales at stores open at least one year increased 4.5 percent, a key measurement of a retailer's health.
Dollar Tree operates 4,523 stores in the United States and Canada with 77 stores added in the second quarter that ended July 28.
Dollar Tree stocks everything from beach toys and holiday decorations to toothbrushes and toilet bowl cleaner. While the majority of its merchandise is off-brand, Dollar Tree does sell some name-brand merchandise.
Hershey's, Hefty, Palmolive, Zest, Dial, Kraft, Werther's and BIC are among the name-brand items stocked in Dollar Tree stores.
Reid declined to say what percentage of Dollar Tree's inventory includes branded items that would have coupons offered on them.
"That's part of the lure of coming to Dollar Tree, the thrill of the hunt," Reid said.
Dollar Tree's coupon policy will be posted in all stores on Sunday morning and employees have been trained on how to accept them, Reid said.
Among the coupon policy guidelines, according to Reid, only manufacturer coupons will be accepted and the store manager has the right to refuse a coupon or limit quantities. Printable coupons from the Internet will be accepted, with limitations.
