Dollar Tree Just Made an Announcement That Will Majorly Impact Shoppers — and People Are Shocked

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Fond du Lac, Wisconsin USA - March 14th, 2024: Dollar Tree store logo sign on a building.
Credit: Aaron of L.A. Photography/Shutterstock

After almost nine years of working on a merger, it seems Dollar Tree is thinking about cutting ties with Family Dollar. Dollar Tree CEO Rick Dreiling made a recent statement that the company will be hosting a formal review of the businesses and considering the possibility of putting Family Dollar up for sale.

After purchasing Family Dollar in 2015 for more than $8 billion, Dollar Tree has made the decision to explore putting the chain retailer up for sale. Around 8,000 Family Dollar stores across the United States serve lower-income households with products sold at reasonable prices of between $1 and $10. However, after closing more than 900 stores last year — with plans to shut down even more — Dollar Tree’s CEO made a statement that the “unique needs” of the two different stores are difficult to manage, and that the possibility of a sale is on the table.

This announcement comes after Dollar Tree acquired the leases for 170 different 99 Cents Only stores in Arizona, California, Nevada, and Texas. The retailer plans on transforming those locations into Dollar Tree stores and selling its own products, effectively ending 99 Cents Only stores. Dollar Tree also announced its plans to expand in-store offerings and elevate its prices, with items costing up to $7, including products in the refrigerated and frozen food section, pet food, and hygienic supplies.

As of May 4, Dollar Tree and its expanded locations with Family Dollar, operate over 16,000 stores across the United States in Canada. According to a statement, Dollar Tree has not set a deadline or a timetable for the “thorough review” it plans on having for its merger to see if it is worth keeping Family Dollar or selling it off. The company is also considering other options, including a spin-off or another disposition of the business.