Dollar Tree Embarks on a Path of Transparency
Businesses rarely come out and tell you that they have a bad product, but on rare occasions, embracing the need for change and admitting problems has worked to help turn a brand around.
In 2009, for example, Domino’s shared some videos from its internal focus groups on YouTube, which showcased the company’s brutal internal critique of its own pizza. The campaign, known as the ‘Pizza Turnaround,’ marked a reset for the brand, built around admitting that its core product needed work.
Dollar Tree is taking a similar approach, albeit in a different context. The discount chain has committed to closing a number of locations in 2026 and has made a startling admission: thousands of its stores are ‘substandard.’
During Dollar Tree’s first-quarter earnings call, CEO Michael Creedon acknowledged that 42% of the company’s stores were below its standards. However, he noted that the chain has made significant progress in improving store standards, with the number of substandard stores decreasing to less than a third.
The process of improving store standards has gotten easier, according to Creedon, as more and more stores are above the company’s standard. This is a testament to the company’s commitment to transparency and customer satisfaction.
A case study of the Domino’s campaign for the Advertising Research Foundation (ARF) showed that the blueprint the pizza chain used was centered around admitting that its product was flawed. This approach not only changed the perception of intent but also laid the foundation for a new relationship with customers.
RTM Nexus CEO Dominick Miserandino thinks Dollar Tree has played this well, stating that ‘transparency doesn’t just buy you time, transparency buys you trust.’ By owning up to its mistakes, Dollar Tree has earned the trust it needed to execute its plan to improve store standards.
The chain plans to fix most of its fleet, but some stores will be closed instead of remodeled. As previously shared, Dollar Tree is targeting approximately 400 gross new store openings and 75 closings. The company has not shared a timetable for the closures, but some have already happened.
Store-tracking data from ScrapeHero shows that Dollar Tree closed more than a dozen locations in March, including four in New Jersey and three in New York.
