The operator of Dollar Tree and Family Dollar has announced it is planning to launch hundreds of private label products as it makes a major expansion into grocery sales.
According to the company it will begin replacing its control brands with private brands and plans to introduce “hundreds of national brand-equivalent products in the back half of this year,” according to CEO Rick Dreiling, who spoke in a conference call announcing the company’s latest results.
Dollar Tree’s new private label items will include “new labels and redefined labels, many of which are being developed in our new test kitchen here in Chesapeake, Virginia,” Dreiling said. “Separately, we have been aggressively expanding our $3, $4, $5 frozen and refrigerated product across the Dollar Tree store base going from 0 to 3,500 stores in 2022,” he added.
Last year the company announced it was changing its price plan from $1 to $1.25, which seems to have been successful. Dollar Tree has also begun to look toward providing more food items for its shoppers by expanding the number of cooler doors with plans to add 16,000 doors in 2023 to accommodate more frozen and refrigerated items.
Dollar Tree, which runs more than 16,000 stores, said it added 464 locations in fiscal 2022, including 123 stores during the fourth quarter.