Dollar Tree in 99 Cents Only Stores

[storewanderer]

How are these stores looking?

The stores in Reno and Carson City that they took over are still really understocked. Business level seems okay but not nearly as much traffic as 99 Only had even as 99 Only was dying/had far fewer customers. They have installed permanent exterior signage on both stores as of this week (Reno was just done; Carson was done a while ago).

Also in Carson City earlier this month they demolished the 99 Only walk in refrigeration so that was probably quite a cost to do that so they must like that location.

[Romr123]

Went into the one in Palm Springs at Tahquitz/Sunrise (the former Fresh and Easy). Across from a Rite Aid. Store looked very neat and tidy (the one up at Vista Chino and Sunrise is also clean and tidy---must have good district management). There appeared less foot traffic than when it was 99 PLUS, but about the normal traffic for a Dollar Tree (continuous work for the checker but not more than 2-3 people in line at any given time)

[ClownLoach]

Here's what I think is happening. Some of these are getting remodels, nice permanent signs etc. Others still use banners for signs and look like a pop up store.

I think they're probably renegotiating leases on these, even though they acquired them in the bankruptcy. Once they get new terms and extensions then they start to do more meaningful remodel work, install permanent signs, etc. It sounds like they are a desirable tenant in the sense of being reliable and not causing trouble in shopping centers, so the landlords should be willing to sign new leases with their preferred terms to replace the bankruptcy transferred 99 leases. Anything they don't get new terms on I expect will continue to run like a pop up store until an inevitable closure.

[HCal]

The ones near me aren't looking too hot. They have a lot less merchandise than 99 Cents Only had (no fresh food) and they have spread it out to fill the space. There are few customers and they seem to be buying only a few things. Obviously no one is going there for weekly grocery shopping like they did when it was 99 Cents Only, but even then, I'm surprised at the lack of traffic. It doesn't help that in many cases, there is a more established Dollar Tree nearby.

Dollar Tree needs to either expand into more categories, or shrink and sublet part of the stores. These former 99 stores are too big for their current mix.

[storewanderer]

The ones near me aren't looking too hot. They have a lot less merchandise than 99 Cents Only had (no fresh food) and they have spread it out to fill the space. There are few customers and they seem to be buying only a few things. Obviously no one is going there for weekly grocery shopping like they did when it was 99 Cents Only, but even then, I'm surprised at the lack of traffic. It doesn't help that in many cases, there is a more established Dollar Tree nearby.

Dollar Tree needs to either expand into more categories, or shrink and sublet part of the stores. These former 99 stores are too big for their current mix.

Both here have plain white wall interiors (Dollar Tree went in and painted them white) and zero decor. They absolutely look like pop up stores.

The Carson City one is probably far enough from the other Dollar Trees to work. it is next to a Grocery Outlet that has historically been busy... lately not as busy...

The Reno one is an excellent location. It should do very well but we will see what happens. There are multiple Dollar Trees within about 5 minutes, however, one did close 2 years ago that was about 8 minutes away. So this could be seen as a replacement or something.

The only thing I notice they did different was full pallet displays of water, paper products, and such. I think they may have used those displays to cover up the wiring from where they removed the produce refrigeration. These just feel like they have less merchandise than other Dollar Trees. I can't figure out if I am just wrong on this, it is something with the store size, or what.

[ClownLoach]

The ones near me aren't looking too hot. They have a lot less merchandise than 99 Cents Only had (no fresh food) and they have spread it out to fill the space. There are few customers and they seem to be buying only a few things. Obviously no one is going there for weekly grocery shopping like they did when it was 99 Cents Only, but even then, I'm surprised at the lack of traffic. It doesn't help that in many cases, there is a more established Dollar Tree nearby.

Dollar Tree needs to either expand into more categories, or shrink and sublet part of the stores. These former 99 stores are too big for their current mix.

Both here have plain white wall interiors (Dollar Tree went in and painted them white) and zero decor. They absolutely look like pop up stores.

The Carson City one is probably far enough from the other Dollar Trees to work. it is next to a Grocery Outlet that has historically been busy... lately not as busy...

The Reno one is an excellent location. It should do very well but we will see what happens. There are multiple Dollar Trees within about 5 minutes, however, one did close 2 years ago that was about 8 minutes away. So this could be seen as a replacement or something.

The only thing I notice they did different was full pallet displays of water, paper products, and such. I think they may have used those displays to cover up the wiring from where they removed the produce refrigeration. These just feel like they have less merchandise than other Dollar Trees. I can't figure out if I am just wrong on this, it is something with the store size, or what.

They opened a new store in a former Office Depot here this summer and it opened packed to the rafters with merchandise. Too many gondolas too tall in my opinion as it's like walking into a wall of merchandise. This obviously wasn't part of the former 99 leases but it was an extensive construction project that even included building a full T-frame ceiling with tiles. I'm assuming they do those to save on air conditioning even though they date the store appearance.

So they're capable of doing these right, which is why I think they're going to act like pop up stores on these 99 properties until they can secure whatever lease updates and maybe landlord contributions they can get. Then remodel. They probably figure they can make money either way otherwise they wouldn't have bought these leases.

[storewanderer]

The ones near me aren't looking too hot. They have a lot less merchandise than 99 Cents Only had (no fresh food) and they have spread it out to fill the space. There are few customers and they seem to be buying only a few things. Obviously no one is going there for weekly grocery shopping like they did when it was 99 Cents Only, but even then, I'm surprised at the lack of traffic. It doesn't help that in many cases, there is a more established Dollar Tree nearby.

Dollar Tree needs to either expand into more categories, or shrink and sublet part of the stores. These former 99 stores are too big for their current mix.

Both here have plain white wall interiors (Dollar Tree went in and painted them white) and zero decor. They absolutely look like pop up stores.

The Carson City one is probably far enough from the other Dollar Trees to work. it is next to a Grocery Outlet that has historically been busy... lately not as busy...

The Reno one is an excellent location. It should do very well but we will see what happens. There are multiple Dollar Trees within about 5 minutes, however, one did close 2 years ago that was about 8 minutes away. So this could be seen as a replacement or something.

The only thing I notice they did different was full pallet displays of water, paper products, and such. I think they may have used those displays to cover up the wiring from where they removed the produce refrigeration. These just feel like they have less merchandise than other Dollar Trees. I can't figure out if I am just wrong on this, it is something with the store size, or what.

They opened a new store in a former Office Depot here this summer and it opened packed to the rafters with merchandise. Too many gondolas too tall in my opinion as it's like walking into a wall of merchandise. This obviously wasn't part of the former 99 leases but it was an extensive construction project that even included building a full T-frame ceiling with tiles. I'm assuming they do those to save on air conditioning even though they date the store appearance.

So they're capable of doing these right, which is why I think they're going to act like pop up stores on these 99 properties until they can secure whatever lease updates and maybe landlord contributions they can get. Then remodel. They probably figure they can make money either way otherwise they wouldn't have bought these leases.

Their newest store in my market is out in Winnemucca in a former Bealls (before that it was "Honk's $1.05" and before that JC Penney) and this store is like you describe. It is packed with high shelves and feels VERY large. It is very well stocked (has the usual amount of business; enough customers to keep 1 cashier busy most of the time) and the shelves are pretty high. It is quite a bit larger than others in the area.

It may be they didn't do inventory buys to account for these 99 Stores, so they are giving them what they can until their inventory buying catches up.

I wish Dollar General had bought some of these leases and tried Popshelf format. Would have been a smashing success in Reno with that 99. Not sure it would have been a great match for most 99 locations.

[ClownLoach]

Both here have plain white wall interiors (Dollar Tree went in and painted them white) and zero decor. They absolutely look like pop up stores.

The Carson City one is probably far enough from the other Dollar Trees to work. it is next to a Grocery Outlet that has historically been busy... lately not as busy...

The Reno one is an excellent location. It should do very well but we will see what happens. There are multiple Dollar Trees within about 5 minutes, however, one did close 2 years ago that was about 8 minutes away. So this could be seen as a replacement or something.

The only thing I notice they did different was full pallet displays of water, paper products, and such. I think they may have used those displays to cover up the wiring from where they removed the produce refrigeration. These just feel like they have less merchandise than other Dollar Trees. I can't figure out if I am just wrong on this, it is something with the store size, or what.

They opened a new store in a former Office Depot here this summer and it opened packed to the rafters with merchandise. Too many gondolas too tall in my opinion as it's like walking into a wall of merchandise. This obviously wasn't part of the former 99 leases but it was an extensive construction project that even included building a full T-frame ceiling with tiles. I'm assuming they do those to save on air conditioning even though they date the store appearance.

So they're capable of doing these right, which is why I think they're going to act like pop up stores on these 99 properties until they can secure whatever lease updates and maybe landlord contributions they can get. Then remodel. They probably figure they can make money either way otherwise they wouldn't have bought these leases.

Their newest store in my market is out in Winnemucca in a former Bealls (before that it was "Honk's $1.05" and before that JC Penney) and this store is like you describe. It is packed with high shelves and feels VERY large. It is very well stocked (has the usual amount of business; enough customers to keep 1 cashier busy most of the time) and the shelves are pretty high. It is quite a bit larger than others in the area.

It may be they didn't do inventory buys to account for these 99 Stores, so they are giving them what they can until their inventory buying catches up.

I wish Dollar General had bought some of these leases and tried Popshelf format. Would have been a smashing success in Reno with that 99. Not sure it would have been a great match for most 99 locations.

They will have to remodel these 99 stores to be as productive as the regular new stores. This new one near me was the largest in town and is as I said jam packed with product. One in a former 99 that is a wedge of a former Ralphs is still in the banner sign mode and reusing existing 99 shelving. Between the lower profile shelving and wider aisles I figure they can't fit half the assortment in there.

[c95xrk]

Dollar Tree took over both former 99 Cents Only stores in my city. One was a Petco years ago on a major commercial corridor next to Walmart. It opened in 2015, and is well-stocked but still very much 99 Cents on the inside with the paint scheme, directional signage, etc. The other is a one-time Save Mart in a quieter, older part of town that 99 Cent occupied for around 20 years. That store is far worse off, not stocked terribly well, and feels much shabbier. Both have banners in place of permanent signage.

Interestingly enough, Dollar Tree had signed a lease for a store in a former World Market in my city, not far from where the newer, nicer 99 Cent-turned-Dollar Tree resides. They backed out of that lease when they took over 99 Cents, and it opened up the door for a Trader Joe's to open in my town after decades of begging and pleading.

[ClownLoach]

Both here have plain white wall interiors (Dollar Tree went in and painted them white) and zero decor. They absolutely look like pop up stores.

The Carson City one is probably far enough from the other Dollar Trees to work. it is next to a Grocery Outlet that has historically been busy... lately not as busy...

The Reno one is an excellent location. It should do very well but we will see what happens. There are multiple Dollar Trees within about 5 minutes, however, one did close 2 years ago that was about 8 minutes away. So this could be seen as a replacement or something.

The only thing I notice they did different was full pallet displays of water, paper products, and such. I think they may have used those displays to cover up the wiring from where they removed the produce refrigeration. These just feel like they have less merchandise than other Dollar Trees. I can't figure out if I am just wrong on this, it is something with the store size, or what.

They opened a new store in a former Office Depot here this summer and it opened packed to the rafters with merchandise. Too many gondolas too tall in my opinion as it's like walking into a wall of merchandise. This obviously wasn't part of the former 99 leases but it was an extensive construction project that even included building a full T-frame ceiling with tiles. I'm assuming they do those to save on air conditioning even though they date the store appearance.

So they're capable of doing these right, which is why I think they're going to act like pop up stores on these 99 properties until they can secure whatever lease updates and maybe landlord contributions they can get. Then remodel. They probably figure they can make money either way otherwise they wouldn't have bought these leases.

Their newest store in my market is out in Winnemucca in a former Bealls (before that it was "Honk's $1.05" and before that JC Penney) and this store is like you describe. It is packed with high shelves and feels VERY large. It is very well stocked (has the usual amount of business; enough customers to keep 1 cashier busy most of the time) and the shelves are pretty high. It is quite a bit larger than others in the area.

It may be they didn't do inventory buys to account for these 99 Stores, so they are giving them what they can until their inventory buying catches up.

I wish Dollar General had bought some of these leases and tried Popshelf format. Would have been a smashing success in Reno with that 99. Not sure it would have been a great match for most 99 locations.

Is there any current growth at Popshelf? Or has DG basically put it on the back burner? It just seems like that was moving fast from the test and adjust phase to national rollout.