OAN Staff James Meyers
9:27am – Wednesday, March 26th, 2025
Dollar Tree announced Wednesday it was selling family dollars for $1 billion to two private equity companies.
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In a statement, Dollar Tree said private equity company Brigade Capital Management and Macellum Capital Management would purchase family dollars.
Despite both dollar trees and family dollars targeting low-income consumers, family dollar locations have struggled to increase production, and last year the parent company announced plans to close almost 1,000 locations.
Furthermore, family dollars are short of competing against other competitions, such as Walmart and other large retailers. The company also created a recent negative headline after it was revealed that rats had been invaded into multiple warehouses.
Dollar Tree says many family dollar customers are very price-conscious, but the chain has been hurt by an increase in shoplifting cases, and hurt the entire business.
“Dollar Tree has been struggling to get the business to work for over a decade,” GlobalData analyst Neil Saunders said in an email. “That effort has been hampered by supply chain issues, poor store locations, non-value-centric propositions, and many other operational issues.”
He added, “Essentially, there's a little bit more dollar trees apart than you can bite.”
Meanwhile, Dollar Tree has been searching for several months for a strategic move for family dollars. This claims that new sales will allow you to focus on your core business.
“This is a major milestone in our multi-year transformation journey that will help us achieve our full potential,” said Mike Creedon, CEO of Dollar Tree, in a statement.
Dollar Tree had little room for error for the months before its sale. As the Trump administration is trying to shrink the economy, consumers have had to cut their spending due to high inflation under the Biden administration.
Dollar Tree shares rose $2.11 (3.1%) to $69.25 in pre-market trading.
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