Dollar Tree to Sell Family Dollar Brand
Ten years after acquiring the Family Dollar brand in an effort to fit it into its wider bargain store business, Dollar Tree is selling off the retailer for $1 billion. The Virginia-based company announced Wednesday it was selling Family Dollar to private capital firms Brigade Capital Management and Macellum Capital Management. The deal is expected to close in the second quarter of 2025.
“This is a major milestone in our multiyear transformation journey to help us fully achieve our potential,” said Dollar Tree CEO Mike Creedon. “We will continue to grow and optimize our Dollar Tree business to maximize value for Dollar Tree associates, customers and shareholders with an enhanced focus on compelling initiatives, including our expanded assortment, significant planned new store openings across the United States, and transactions that advance our growth strategy.”
Total Retail's Take: By offloading Family Dollar, Dollar Tree hopes to recuperate some its recent losses. The company closed hundreds of Family Dollar stores last year and has struggled to grow sales and profits. Dollar Tree bought Family Dollar in 2015 for $9 billion.
Dollar Tree — which caters to low-income shoppers who have faced the brunt of inflation — has experienced increased competition in the discount category. Furthermore, it raised its prices to $1.25 on most items in 2021. The New York Times reported that last year, Dollar Tree started a multitiered pricing system in some of its stores, with some of its prices increasing to as high as $7.
- People:
- Mike Creedon
Marie Albiges is the managing editor for Women in Retail, Total Retail, and Women Leading Travel & Hospitality. She is responsible for content development, management and production for the group. Marie is a former journalist, a travel aficionado, a French native and fitness enthusiast who lives in Philadelphia with her partner, stepdaughter and dog.
