Presented by: Mike Paglia- Director, Retail Insights October 2014 Mapping the Overlap: Dollar Tree &...
-
Upload
wilfrid-hart -
Category
Documents
-
view
222 -
download
0
Transcript of Presented by: Mike Paglia- Director, Retail Insights October 2014 Mapping the Overlap: Dollar Tree &...
Presented by:
Mike Paglia- Director, Retail Insights October 2014
Mapping the Overlap:Dollar Tree & Family Dollar
© Copyright 2014 Kantar Retail
Copyright © 2014 Kantar Retail. All Rights Reserved.
501 Boylston Street, Suite 6101, Boston, MA 02116
(617) 912- 2828
No part of this material may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system now known or to be invented, without the express written permission of Kantar Retail.
The printing of any copies for back up is also strictly prohibited.
Disclaimers
The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The views expressed do not necessarily reflect the views of the management of the retailer(s) under discussion.
This seminar is not endorsed or otherwise supported by the management of any of the companies covered during the course of the workshop or within the following slides.
© Copyright 2014 Kantar Retail
About These Markets
Assuming the merger between Family Dollar and Dollar Tree goes through, it’s a near certainty that a number of store closings will follow. A normal part of any merger between two large retailers, store closures will be driven by two main factors
1. Internal analysis by the two companies to identify underperforming stores
2. A condition for FTC approval in order to alleviate potential anti-trust issues while ultimately protecting the interests of the shopper
The first driver can’t accurately be addressed until the deal closes and the integration begins. We can get to some level of clarity around the second point, however. Comparing the store bases of the two retailers reveals 15 geographies that have relatively high levels of store overlap. Taken together, these markets represent approximately 1,000 locations between the two store bases. And while not definitive, the exercise does help to identify “candidate markets” that seem more likely than others to experience a level of store contraction. That said, such an analysis ought to be used as one input into a larger equation that ultimately will help suppliers assess the coming changes and successfully navigate the transition.
Source: Kantar Retail analysis 3
© Copyright 2014 Kantar Retail
This Town Isn’t Big Enough for Both of Us…
Source: Kantar Retail analysis; store visits 4
© Copyright 2014 Kantar Retail
The 30,000 Foot ViewConcentrations in Texas and the eastern US ; especially major metro areas
Source: Kantar Retail analysis; AggData 5
© Copyright 2014 Kantar Retail
1. Houston, TX
Source: Kantar Retail analysis; AggData 6
27
117
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
27
117
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
2. Memphis, TN
Source: Kantar Retail analysis; AggData 7
12
71
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
12
71
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
3. Dallas, TX
Source: Kantar Retail analysis; AggData 8
10
64
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
10
64
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
4. San Antonio, TX
Source: Kantar Retail analysis; AggData 9
20
50
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
20
50
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
5. Jacksonville, FL
Source: Kantar Retail analysis; AggData 10
21
48
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
21
48
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
6. Philadelphia, PA
Source: Kantar Retail analysis; AggData 11
29
36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
29
36
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
7. Chicago, IL
Source: Kantar Retail analysis; AggData 12
36
34
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
36
34
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
8. Indianapolis, IL
Source: Kantar Retail analysis; AggData 13
17
45
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
17
45
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
9. El Paso, TX
Source: Kantar Retail analysis; AggData 14
15
47
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
15
47
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
10. Charlotte, NC
Source: Kantar Retail analysis; AggData 15
13
42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
13
42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
11. Tampa, FL
Source: Kantar Retail analysis; AggData 16
12
42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
12
42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
12. Orlando, FL
Source: Kantar Retail analysis; AggData 17
Store base composition
19
31
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
19
31
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
© Copyright 2014 Kantar Retail
13. Louisville, KY
Source: Kantar Retail analysis; AggData 18
Store base composition
18
30
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
18
30
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
© Copyright 2014 Kantar Retail
14. Miami, FL
Source: Kantar Retail analysis; AggData 19
21
37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
21
37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
15. Cincinnati, OH
Source: Kantar Retail analysis; AggData 20
11
33
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
11
33
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FamilyDollar
DollarTree
Store base composition
© Copyright 2014 Kantar Retail
Contact:
Mike PagliaDirector, Retail [email protected]
T:+1 617 912 2855www.kantarretailiQ.com