Dollar Tree is selling off Family Dollar for $1 billion, marking the end of a troubled merger that began in 2015 when Dollar Tree acquired the brand for $9 billion. The sale to private equity groups Brigade Capital Management and Macellum Capital Management is pending regulatory approval. Family Dollar, with approximately 8,000 US stores, has struggled in recent years due to messy store conditions, high prices, over-expansion, and stiff competition from larger retailers like Walmart and Dollar General. Inflation has also increased operating costs and squeezed its lower-income customer base. Analysts note that the dollar store sector faces significant challenges, with low-income customers cutting back on spending and facing financial strain. Dollar Tree may also raise prices to combat tariffs on imported goods, which account for an estimated 40% of its sales.
— news from CNN
