SHOPPING at Dollar Tree is always a rewarding experience for customers who are able to find a variety of items for an unbeatable price.
But they often wonder why it is laid out the way it is, and how to get the best deal.
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In an exclusive interview with The US Sun, the company’s former Chief Customer Officer Alasdair James revealed some major secrets behind the layout of a Dollar Tree store.
James served as an executive director of Dollar Tree between 2021 and 2022, and was closely involved in the store’s design layout and what kind of products it ordered.
“Yes there is a science to it but also there is some art,” James told The U.S. Sun.
“It is laid out for the customer journey.”
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James revealed the front right part of the store was always reserved for seasonal products, placed there to appeal to the customer when they first walked in.
“It keeps the customers interested, its new and different and relevant for the time of the year which is why is it placed at the front of the store,” James said.
But James said seasonal products were also on display at the front of the store because it made it easier for retail workers to roll the items in or out depending on the time of year.
It actually makes it easier to operate the store that way
Alasdair James
James, who is now Chief Commercial and Marketing Officer at Swiftly, also noted that party and gifts were always down the right hand side, given customers often dropped by Dollar Tree to stock up for a party on a budget.
The store is designed for shoppers to go down the party aisle and then come back through craft, which James revealed had “exploded” in popularity during Covid.
While sales for craft items have decreased, James said it was still a major mission for the brand.
James noted that all stores were laid out in a similar fashion to ensure the customer had consistency in their shopping experience and that they knew what to expect.
Prior to Dollar Tree, James served as the Kmart President for several years and CEO of Pier 1 Imports.
He also served in global retail leadership roles including Chief Customer Officer of global brands for Tesco in the UK, a British based grocery brand with $72 billion in annual revenue.
ITEMS IN SELECT LOCATIONS
Calling it “a wonderful retail business”, James said he was very proud of his time there.
When asked about how Dollar Tree chooses what to sell, the retail expert said the company had a “very large” and very experienced team of talented merchants that conducted research on what products to source.
Items would be tested in a few stores to gauge their popularity and then would be rolled out to all stores the following year if they did well.
“In the run up to Thanksgiving this year there would be a few things that Dollar Tree is testing in a handful of stores which will then be part of a larger assortment next year if they do well,” James said.
“Customers aren’t aware of it, because different products are tested in different places.
“They might only notice the item the following year but they would have been tested in advance and signed off based on their performance, which they’ve been doing since the 1980s.”
GOODS AT A HIGHER PRICE POINT
James said the mission of the brand was to meet the varied needs of the customer on a limited budget, and the company was focused on trying to find solutions that meet that need at a low price point.
James also revealed he was part of the team which brought in the $3 and $5 products after the company recognised an “opportunity to give people at a slightly better assortment as a higher price.”
The decision was heavily researched, and came after the company realized there was consumer appetite for items like beef jerky which could no longer be sold at the $1.25 mark.
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“As protein prices went up there was no longer an ability to bring that in so we made the decision to test if people were interested in items at $3 and $5,” James said.
“The vast majority of the items are still at that single price point, but Dollar Tree is continuing to roll that higher price point out so I think it is doing well.”
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