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Family Dollar Private Label Brand Penetration Grows

The discount retailer in on pace to hit is goal of 20% private label brand penetration by 2026.
Greg Sleter headshot

The selection of private label products at Family Dollar stores continues to grow as the retailer recently launched approximately 250 new store brand SKUs and converted more than 300 control brands to private brands, according to Rick Dreiling, the chairman and CEO of Dollar Tree, Family Dollar’s parent company.

“The private brand program is one of the most significant initiatives underway at Family Dollar, and I’m excited that we have a highly competitive offering that expands our assortment across multiple categories and offers consumers national brand equivalent products at compelling values,” he said.

Dreiling noted the continued growth in sales of private label products has the company ahead of schedule to meet its year-end own brand penetration rate goal of 15%. By 2026, the retailer has set a goal of 20% for private label brand penetration. 

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Rick Dreiling

“The private brand program is one of the most significant initiatives underway at Family Dollar, and I’m excited that we have a highly competitive offering that expands our assortment across multiple categories and offers consumers national brand equivalent products at compelling values."

— Rick Dreiling, Dollar Tree (Family Dollar parent co.)

At Dollar Tree stores, the retailer continued to see gains in unit and market share in consumables. Citing data from Nielsen, Dreiling reported that unit volume at Dollar Tree was up 8% while the market as a whole was down 1.5%. 

The gains in traffic and market share are the result of Dollar Tree's ability to attract higher-income customers, he said. Dollar Tree added 3.4 million new customers in 2023, mostly from households earning more than $125,000 annually.


RELATED: Family Dollar To Close 600 Stores In 2024


“We attribute Dollar Tree's exceptional performance to the range of initiatives we have been implementing,” Dreiling said. “One of the most important initiatives at Dollar Tree is our multi-price point strategy, which we're calling More Choices. The premise here is that we can present a more relevant assortment to our customers if we are free to offer items at a variety of price points.”

The Dollar Tree CEO said the retailer has largely completed the rollout of its selection of $3, $4, and $5 frozen and refrigerated items, which are now available in more than 6,500 stores. By the end of 2023, the retailer introduced $3 and $5 center store merchandise to approximately 5,000 Dollar Tree stores and expects to add another 2,000 stores this year.

Dollar Tree

“We are especially excited about the next phase of our multi-price expansion strategy,” said Dreiling. “This expanded assortment will offer Dollar Tree shoppers a wider range of choices across a variety of categories, including food and snacks, beverages, pet care, personal care, and more. This year, across 3,000 stores, we expect to expand our multi-price assortment by more than 300 items at price points ranging from $1.50 to $7.”

As Dollar Tree’s multi-price assortment expands over time, the majority of products sold by the retailer will remain at its entry-fixed price point. 

“Over time, you will also see us fully integrate multi-price merchandise more into our stores so our shoppers will find $5 bags of dog food next to our traditional $1.25 pet treats and toys, and our $3 bags of candy will be found in the candy aisle,” he said. “This is the next chapter of the Dollar Tree value story: new items, more choices, and more savings.”

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