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Why is Dollar Tree able to offer price below discount chain Walmart?
Wiki User
∙ 14y ago
Overheads.
Wal Mart has over 2 million employees worldwide with revenue of $404 bn giving a gross per employee revenue of $20,000.
Dollar tree has 12,500 employees in 3,600 US locations with revenue of $4.64 bn giving a per employee revenue of $371,000 and an average of 4 employees per store.
Wal-Mart may have better buying power, but the suppliers also need to make a profit.
Even if they buy in goods cheaper, Wal-Mart has to add on the cost of all those employees and other overheads which far exceed those of Dollar Tree.
Wiki User
∙ 14y ago
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