In an interview on CNBC, Gary Philbin, CEO of Dollar Tree, admitted that the discount retailer’s supply chains have “been stressed,” but he sought to reassure customers that store shelves would be restocked soon.
“As our trucks show up to stores, we probably have enough for a day or a day and a half, but more is coming,” said Philbin on CNBC’s “Squawk on the Street.” “We’ve called out, and we have $1 billion in the pipeline somewhere.”
Dollar Tree, which also owns the Family Dollar chain, operates more than 15,000 stores across the U.S. and Canada and has been deemed an essential retailer, allowing its stores to remain open. However, “our stores experienced an unprecedented spike in demand for certain products,” said Philbin in a statement, identifying paper and cleaning products as well as sanitizers.
Quarter-to-date same-store sales through March 29 were up 7.1% for Dollar Tree and 14.4% for Family Dollar, but sales have “materially moderated very recently” as the company enters the Easter selling season, with Dollar Tree recording a same-store sales dip of 19.4% for the seven days ending March 29. Similar initial peaks during the first weeks of the pandemic, followed by declines, have been experienced by big-box retailers that have been allowed to remain open, such as Costco, Walmart and Target.
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Last month, Dollar Tree announced plans to hire up to 25,000 additional employees and to reward its hourly store and distribution center associates with an estimated $30 million in wage premiums for at least a four-week period in recognition of their efforts.
