Dive Brief:
- Dollar Tree Inc. has hired a new chief operating officer following a deep shakeup in its C-suite in June.
- Filling the role is Michael Creedon, who most recently served as executive vice president of stores in the U.S. for Advance Auto Parts. Creedon is set to start Oct. 3, with a $500,000 signing bonus, $850,000 base salary and incentive awards.
- Creedon replaces Thomas O’Boyle, who left Dollar Tree this summer with a group of four other executives that either left or announced they were leaving following an activist investor-led board revamp this year.
Dive Insight:
As it plays catch-up to rival Dollar General, Dollar Tree Inc. has undergone a massive leadership transition.
It started with Mantle Ridge’s activist stake in the retailer. The board resisted Mantle Ridge’s push for change at first before capitulating.
After Bob Sasser, former chairman and one-time CEO of Dollar Tree, retired, the board installed a slate of new board members of Mantle Ridge’s choosing. That included new Executive Chairman Richard Dreiling, a former CEO of Dollar General.
Along with the executive changes, Dollar Tree Inc. under Dreiling’s oversight has undertaken several new initiatives, including price investments at its Family Dollar banner potentially worth around $130 million this year, according to an analysis from J.P. Morgan analysts.
The attention to price comes after Dreiling said he was surprised — and not the good kind of surprised — by price gaps between Family Dollar and its competitors. It is also a crucial opportunity for the sector, as steep inflation holds the potential to drive more customers to dollar stores.
As COO, Creedon will have a large role in the retailer’s continuing efforts to grow sales and position itself more competitively. CEO Mike Witynski said that Creedon will be “instrumental in driving the execution of our strategy, and a key leader supporting our culture transformation in Dollar Tree, Family Dollar and Dollar Tree Canada stores.”
For his part, Creedon said that he will be focused on improving operational processes and efficiencies to support store workers and field leaders as well recruiting, training and retaining “key” retail associates.
Since the executive exodus earlier this year, Dollar Tree has also named a new CFO, CIO and other key executives.
