Dollar Tree, Inc. (DLTR - Free Report) announced plans to hire 25000 associates for its Dollar Tree and Family Dollar stores at its third annual Nationwide Hiring Event to be held on Oct 17, 2018. This move will enable the company gear up for the peak holiday season to provide customers with an improved shopping experience.
Holiday season is the busiest and crucial time for retailers as it accounts for a sizeable chunk of yearly revenues and profits. At this time, retailers try to attract customers with offers and promotions. Early-hour store openings, huge discounts and numerous other promotional strategies along with mass hiring are the essential characteristics of the season. National Retail Federation anticipates retailers to employ about 585,000 to 650,000 workers for this holiday season.
Other retailers treading on this path are Macy’s (M - Free Report) , Target (TGT - Free Report) and The Gap, Inc. (GPS - Free Report) . Gap plans to deploy around 65,000 seasonal employees for its Gap, Banana Republic, Athleta and Old Navy stores as well as call centers and distribution centers, for the holiday period. Target intends to employ about 1,20,000 associates, a 20% increase compared with the prior-year figure. Likewise, Macy's intends to hire approximately 80,000 seasonal workers for its Macy’s and Bloomingdale’s stores, distribution centers, call centers and online fulfillment centers across the country.
Moving on, Dollar Tree’s restructuring and expansion initiatives, evident from the company’s steady store openings and improvement of distribution centers, are likely to drive revenues. The company leverages an extensive network of stores to effectively penetrate targeted markets. This, in turn, enables it to generate healthy sales and gain market share.
As part of these efforts, the company opened its 15000th store in July. It is also on track to reach its target of about 26,000 Dollar Tree and Family Dollar stores in North America in the long term. Further, management also highlighted plans to open hundreds of stores on an annual basis.
However, high cost and imposition of tariff on Chinese goods act as deterrents for this Zacks Rank #3 (Hold) company. These headwinds may weigh on the company’s bottom line in near future. This led the stock to decline 8.4% in the past three months, against the industry’s growth of 5.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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