Posted on 03/26/2025 6:03:20 AM PDT by Red Badger
Dollar Tree on Wednesday said it is selling Family Dollar for $1 billion to a pair of private equity firms, a decade after it bought the discount chain for more than $8 billion.
In a statement, Dollar Tree said private equity firms Brigade Capital Management and Macellum Capital Management will purchase Family Dollar, with the discount chain slated to remain headquartered in Chesapeake, Virginia.
Although both Dollar Tree and Family Dollar cater to low-income shoppers, Family Dollar locations struggled to gain traction, prompting the parent company last year to announce plans to shutter about 1,000 locations. Family Dollar also faces fierce competition from Walmart and other large retailers, while a rat-infested warehouse spurred a slew of negative headlines.
Dollar Tree has said that many Family Dollar customers were extremely price-conscious, while the chain was also hurt by rising shoplifting incidents, hurting its bottom line.
"Dollar Tree has struggled for over a decade to make the business work," said Neil Saunders, an analyst at GlobalData, in an email. "Its efforts have been hampered by supply-chain issues, poor store locations, a proposition that isn't value-centric enough and a host of other operational problems."
He added, "Basically, Dollar Tree bit off far more than it could chew."
Dollar Tree had for months been exploring strategic options for Family Dollar, and it said Wednesday that the sale will allow it to focus on its core business.
"This is a major milestone in our multi-year transformation journey to help us fully achieve our potential," Dollar Tree CEO Mike Creedon said in a statement.
In recent months, Dollar Tree has had little room to maneuver, particularly in the months leading up to the sale. Americans have been tightened their spending, even at bargain chains, as consumer confidence in the economy slides.
Shares of Dollar Tree rose $2.11, or 3.1%, to $69.25 in premarket trading.
Is ‘Family Dollar’ the one that stuck it to Mike Lindell?
Those Family Dollar stores are often in bad neighborhoods where they don’t have supermarkets and they probably are having problems with “shrinkage”.
Don’t know....................
interesting. isn’t this how our government works?
There are also rumors that Dollar Tree is going to raise prices on the $1.25 items to $1.75 although I also heard a rumor that it would only be for aluminum products.
By the way, if anyone is interested in someone that tests out Dollar Tree products, watch Vivian Tries on youtube. She is hilarious and does actually test the products...
and that's where I'm going today....if it doesn't snow...lol...Hey...it's Upstate NY.
how much “china” can people buy?
I never shopped Family Dollar, their ads never looked like good buys.
I have gone to other 99cent or dollar stores but not recently, since trying not to buy from stores that I don’t like their views/are in ways hurting us US Citizens.
These stores are a boon to small rural towns that otherwise would have nothing. Th supply chain to support mom and pop stores largely doesn’t exist anymore.
We go to Dollar General and Dollar Tree for the cheap garbage bags.
Dollar Tree (Green Signs) and Dollar General (Yellow and Black Signs) are pretty decent mostly. Family Dollar have never been conveniently located for my needs.
DEI Investment banker back then!??
Yeah, the Family Dollar stores have decent prices and they put them in rural areas that won’t support supermarkets as well as in bad areas where the supermarkets won’t go.
Dang it! They didn’t consult me on this decision!
Never buy food stuffs! I bought some rc cola once and took a drink and got a mouthful of gelled gloppy syrup that bout caused me to heave a river.- didn’t know ehat the heck it was till I poured the can out and saw the rest of the gloppy slop plop into the sink. I figure it had sat around in varying co ditions so long it congealed some of the syrup and sugars
They didn’t know how to run a business that sold products that cost more than a dollar!.....................
As a movie buff I loved looking through the DVDs and Blu-rays at Dollar Tree. They’ve discontinued movies now. :(
Health care/personal hygiene products at Dollar General are usually less expensive than drug or grocery stores. They have name brands as well as their own brand. Any of tbe dollar stores have discount prices on greeting cards. Groceries are much higher.
The main reason we shop at them is because hey are small. Even with a cart, walking in an acre-sized grocery store is painful.
I was wondering that too.
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