CHESAPEAKE, Va. — Dollar Tree Stores has ended its experiment with price points that were not $1, the company said.
“We called it ‘Oops’ and the strategy was, ‘Oops, we know this isn’t $1 but it’s too good to pass up,’” explained Bob Sasser, president and chief executive officer, in a conference call discussing fourth-quarter earnings yesterday.
But Sasser said results “weren’t compelling,” and customers found the program “distracting,” leading the company to abandon the test. The multi-price-point strategy would be confined to Dollar Tree’s Deal$ subsidiary only, he added.
In financial results for the fourth quarter, which ended Jan. 31, the retailer reported net income of $105.2 million, a 7.6% increase. Dollar Tree previously reported that sales for the quarter improved by 6.8% to $1.4 billion while comparable-store sales were up by 2.2%.
Sasser said comparable food and consumable sales improved by 3.4% during the quarter but that the mix brought down gross margins slightly, to 35.6% of sales.
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