This report does not constitute a rating action. Overview Key strengths Key risks Strong market position as one of the largest dollar store players in the U.S.Consistent free cash flow generation with $1.8 billion in 2020.Countercyclical business less exposed to online disruption than most retail peers.Historically conservative financial policy with a commitment to investment-grade ratings. Freight and supply chain disruptions remain the biggest near-term challenges. Labor turnover and wage pressure also persist. Core lower-income customers' spending power limited and vulnerable to higher unemployment and living expenses. The company recently announced an important shift to a $1.25 price point from $1, partially to help offset its elevated cost structure. Dollar Tree says it is seeing higher costs for U.S. inland transportation
