Dollar Tree is a chain of discount stores that sell all items for $1 or less. Headquartered in Chesapeake, VA, Dollar Tree is the leading single-price-point retailer in North America. In June 2015, Dollar Tree, Inc. acquired Family Dollar Stores, Inc. and its more than 8,200 stores, making Dollar Tree the leading operator of discount variety retail stores with 13,600 locations. Today, they now operate over 14,900 locations across the US. Dollar Tree is an attractive tenant for net lease investors who prioritize a higher cap rate. New locations typically range between 8,000 to 12,000 square feet of leasable space. Freestanding locations are located in strong retail corridors with street presence, easy ingress/egress, and ample parking. Dollar Tree also targets regional or neighborhood centers anchored by “big box” discounters or dominant grocers for their stores. Not as flashy as other prominent net lease tenants, Dollar Tree has found success focusing on its core consumer market of value minded customers. Dollar Tree’s core growth strategy entails capitalizing on insights regarding location, target customer profile, competitive dynamics and cost structure. Dollar Tree plans to operate more than 7,000 Dollar Tree stores and 12,000 Family Dollar stores across the United States.
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