CHESAPEAKE, VA. — The introduction of an initiative called the “Snack Zone” in 214 locations has generated incremental sales and additional foot traffic for Dollar Tree Inc., company executives told analysts during a May 31 conference call to discuss first-quarter results.
“The Snack Zone is designed to provide customers with compelling assortment of immediate consumption products at the $1 price point to drive incremental sales,” said Gary M. Philbin, president and chief executive officer. “Our customers are excited with the introduction of the Snack Zone, great values across categories of cold beverages, candy, snack cakes, salty treats, other favorites that bring our customers back to those treats that they crave.”
Mr. Philbin said the company plans to launch the Snack Zone initiative into 750 Dollar Tree stores in fiscal 2018.
Net income at Dollar Tree in the first quarter ended May 5 totaled $160.5 million, equal to 68c per share on the common stock, down 20% from $200.5 million, or 85c per share, in the same period a year ago. Net sales totaled $5,553.7 million, up 5% from $5,287.1 million.