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Tickets Rise at Dollar Tree

CHESAPEAKE, VA-Increased traffic and higher tickets boosted the dollar store chain's sales by 14.9% in the second quarter.

By Marita Thomas | Updated on August 24, 2006

CHESAPEAKE, VA-High gas prices did not hurt, and may have helped Dollar Stores Inc. deliver another positive quarter by nearly all measures. As traffic, total sales, comp-store sales and profits grew, margins took a slight dip to 33.2% in this year’s second quarter, compared with 34% in second-quarter 2005.

Management of the locally based dollar store chain attributed the margin slide to higher transportation costs, the continuing integration of the 138 Deal$ stores it acquired from Supervalu Inc. for $30.5 million this March and an ongoing planned shift to more consumables.

Bob Sasser, president and CEO, said raising margins represents “our biggest opportunity for growth.” Management is focusing on increased inventory turns, particularly as frozen and refrigeration sections expand to more stores.

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