Dollar Tree (NASDAQ: DLTR) announced an encouraging new partnership with Instacart today, the leading online grocery platform. The expansive move from Dollar Tree will allow same-day delivery from nearly 7,000 Dollar Tree Stores; in as fast as one hour. Surprisingly, Dollar Tree stock didn’t feel the promise of the new deal, gaining just 1.5% in the early hours of Thursday trading.
The deal marks a total of 98 million U.S households that will be able to combine the everyday necessities of Dollar Tree with the exceptional delivery model of Instacart – opening up a whole new platform of revenue and creating an online customer base stretching throughout the U.S, rather than the traditional in-and-out shopping model.
The move has been a proven success, and today’s expansion is just the final product of nearly a year’s testing. Piloted in November last year, the partnership soon grew to 6,000 stores in January, soon to be followed by same-day delivery in August this year. As of today, Instacart and Dollar Tree are offering same-day delivery from nearly 13,000 stores.
Michael Witynski, President and CEO of Dollar Tree announced his excitement:
”With our focus on best meeting customers' evolving needs, we are pleased to expand our Instacart partnership to provide even more households across the country with convenience and value on everyday products, as well as the party essentials and seasonal items that Dollar Tree is best known for”
The partnership could not have come at a better time. With seasonal celebrations around the corner, Dollar Tree should be able to successfully leverage classic seasonal items to ensure the partnership is exorcising its full potential.
With DLTR investors remaining relatively dormant, unlike the 15% surge we saw last month. We can expect the bulls to return as we approach key annual celebrations – a time where Dollar Tree normally thrives.
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