Bargain retail outlet Dollar Tree is looking into a sale of Family Dollar, a chain it acquired in 2015.
Dollar Tree has recruited the help of financial advisers to conduct a strategic review of its fellow retail chain that includes a possible sale. It comes after the two chains suffered an underwhelming quarter during the Easter season, with Dollar Tree sales rising 1.7% and Family Dollar sales going up by just 0.1%.
The retailer has clarified that it has no time frame for this sale to take place and that it is possible the sale will not occur.
Dollar Tree purchased Family Dollar almost 10 years ago for $8.5 billion. However, the purchase has failed to be a success, bringing Dollar Tree’s sales to a small growth of only 1.8% in 2018.
In March, Dollar Tree Inc. announced plans to close over 900 of its Family Dollar locations, along with 30 of its own stores. The retailer stated that it was closing these stores down after conducting a review to check for underperforming stores.
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“Our review identified approximately 600 Family Dollar stores for closure in the first half of 2024 and an additional approximately 370 stores to be closed over the next several years during the normal course of lease expiration,” a statement from a company spokesperson read.
In November 2021, Dollar Tree Inc. announced that it would raise the price of its products to $1.25, a contrast to how items would previously only cost $1. The company claimed that this was not due to inflation but as a means to bring back items previously discontinued due to the U.S. dollar being devalued over time.
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