Dollar Tree has announced that it is exploring the possibility of selling or making other changes to its Family Dollar store chain.
Last year, the discount store hinted at this move when it mentioned conducting a thorough review of its Family Dollar portfolio and closed nearly 1,000 underperforming store locations under both brands. Despite this, the company also opened around 1,200 new Dollar Tree-Family Dollar combo stores in rural areas with limited retail options, with plans for even more in the future.
It remains uncertain whether the plans for additional combination stores are still ongoing or what would happen to them if a sale or spinoff of Family Dollar were to occur. Dollar Tree has not set a specific timeline for completing the review of strategic options for Family Dollar.
CEO and Chairman Rick Dreiling stated, “Our aim is to advance both the Dollar Tree and Family Dollar banners and assess whether the exclusive focus of a dedicated team would benefit both, while creating value for Dollar Tree shareholders and other stakeholders.”
Dollar Tree, headquartered in Chesapeake, Virginia, acquired Family Dollar in 2015 after outbidding Dollar General. However, financial reports indicate challenges in integrating the brand into its operations.
In a significant development, Dollar Tree raised prices on in-store items in 2021 for the first time in 35 years, transitioning from a uniform $1 price point to a range of $1.25 to $7 for various products.
The retailer is actively working on expanding its Dollar Tree brand and recently purchased 170 stores in Arizona, California, Nevada, and Texas from the bankrupt 99 Cent Only chain, which will be rebranded under its own name.
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