Roots of Success Stem from High Margins. (The Super Growth Leaders).(Dollar Tree)(Brief Article)(Statistical Data Included)

Some might argue Dollar Tree's sales model defies the laws of basic retailing. While most retailers use low price as a lure, counting on the shopper to buy more costly, profitable goods during the same trip, the nation's largest single-price-point retailer makes all of its money based on items sold for $1. When executed right, this extreme-value format can be highly profitable.

With revenue growing at a rate of 25% or more annually and earnings tripling in five short years, Dollar Tree has risen to become a leader in its niche. "The $1 price point is the secret, if you will. The difficulty is to do it well at that price point. The way you do it well is with good people, common sense and hard work," chairman and ceo Macon Brock Jr. recently told DSN Retailing Today.

Size plays a significant role in Dollar Tree's success because the retailer can secure sweeter deals on large-volume purchases. And with more than 1,900 stores in 36 states, …