THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, July 24, 1996 TAG: 9607240411
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: NORFOLK LENGTH: 56 lines
Dollar Tree Stores Inc., the rapidly expanding chain of discount variety stores, wants to move its headquarters and distribution center from Norfolk Commerce Park, most likely to another site in South Hampton Roads, the company's chief executive officer said Tuesday.
``It's inevitable,'' Macon Brock, president and chief executive, said after the company's annual shareholders meeting in the Norfolk Airport Hilton. ``This kind of growth requires change.''
Dollar Tree's expansion, which has left its direct competitors in the dust, also has left the company with little room at its center near Norfolk International Airport. Brock said there isn't enough land available there to expand.
The retailer will likely build its $15 million to $20 million headquarters and East Coast distribution center in South Hampton Roads, though it has considered sites outside the area, said H. Ray Compton, Dollar Tree's executive vice president and chief financial officer. About 250 employees would be involved in the move.
Dollar Tree officials would not mention specific sites being considered.
Preliminary plans call for the project to be completed by the end of 1997. It would include about 75,000 square feet of office space and a 400,000-square-foot distribution center. Dollar Tree has 216,000 square feet of office and warehouse space at present its headquarters.
Norfolk economic development officials could not be reached Tuesday, but it's clear that the city's neighbors are anxious to becomethe replacement.
``We would love to be able to help them,'' said Donald Z. Goldberg, Chesapeake's economic development director. ``There are a number of sites. . .
Also during Tuesday's shareholders meeting - the company's first - the retailer announced plans to further cement itself as the nation's biggest ``all's a dollar'' retail chain. It has 686 stores nationwide, and posted sales of $300 million last year.
``One thousand stores by the end of 1998 is within our grasp,'' said Brock, adding that Dollar Tree would continue to look for acquisition opportunities. The company purchased the Dollar Bills chain of 136 stores earlier this year.
Brock and Chairman J. Douglas Perry founded Dollar Tree in 1986, believing they had found a niche selling everything from beauty products to hardware for $1 each.
The company went public last year.
Dollar Tree's strategy is to locate stores in regional, strip shopping centers anchored by such discounters as Wal-Mart, Kmart and Target Stores. The chain doesn't advertise, and it doesn't sell junk or damaged items, officials said.
That won't change, Brock said.
``Continuity has been our hallmark,'' he said. ``We do not plan to go offshore. . . . We do not plan to open superstores.''
And lastly, Dollar Tree does not plan to sell products for more than a $1.
``We are asked that constantly,'' said Brock, laughing. by CNB