Dollar Tree announces new locations including plan for Family Dollar combination stores
The announcement comes as the pandemic has taken a toll on many retailers and forced thousands of stores to close. But dollar stores have surged as economically-strapped customers seek out bargains on food, household essentials and other items. Dollar Tree said Wednesday that sales at stores open for at least one year increased % during the 13 weeks ending Jan. 30, compared with the same stretch a year ago.
The company, which also owns the Family Dollar chain, will open Dollar Tree stores and Family Dollar stores this year. The two chains combined have nearly 15, US locations and last year opened around stores.
Dollar Tree has a treasure hunt-like atmosphere in stores and caters to suburban, middle-income shoppers. It carries primarily seasonal goods, toys, stationary, home decor, kitchenware, and party items. Family Dollar is tailored to lower-income shoppers in rural and urban areas, and stocks more food and household basics than Dollar Tree.
All products at Dollar Tree sell for $1, although the chain is testing out a new initiative to sell select products from $1 to $5. Family Dollar sells most of its merchandise at various prices under $
New "combination" stores coming
Dollar Tree has lagged rival Dollar General in recent years. Dollar General has been opening roughly 1, stores a year and now has upwards of 16, US locations. The company caters mainly to low-and-middle-income customers in rural and suburban areas.
Dollar Tree announced a plan Wednesday to crack the rural market by opening 50 new "combination stores" that feature elements of Dollar Tree and Family Dollar outlets and sell a mix of merchandise - Dollar Tree's typical $1 seasonal items plus Family Dollar's food and essentials for more than $1.
The concept is targeted at towns with 3, to 4, people, and Dollar Tree sees an opportunity to open around 3, of these stores.
Analysts say the new concept combines the appeal of both chains into one store.
"Dollar Tree generally has a better customer perception so it helps to brand the store with that banner, but the markets the company is targeting seem best served by Family Dollar," Joseph Feldman, analyst at Telsey Advisory Group, said in an email. "The small markets Dollar Tree is targeting are underserved, which is why they are going after them."
Dollar General, meanwhile, is testing a new store concept of its own: Popshelf. The new stores feature a range of home and beauty goods, the majority of which will be priced around $5. Popshelf stores target women in suburban areas that earn between $50, and $, a year.
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CORRECTION: This story has been corrected to reflect that Dollar Tree did not announce a specific starting price point for its Dollar Tree Plus! products.
Dollar Tree, the chain of stores famous for selling products for just $1, is launching new Dollar Tree Plus! products that could be offered at prices higher than $1 in more than stores.
Dollar Tree President and CEO Gary Philbin announced the move Thursday in reporting first quarter results, while also relaying to investors that the chain's Family Dollar turnaround is gaining traction.
“Dollar Tree continues to be a destination for customers looking for great values and convenience, as demonstrated by our 45th consecutive quarter of delivering an increase in same-store sales," Philbin said. "And, we are excited to kick off the initial introduction of Dollar Tree Plus! multi-price point products into select test stores. These products are designed to provide our shoppers with More Choices, More Sizes, and More Savings. We are in the process of expanding this test to more than Dollar Tree stores."
Dollar Tree says the lifting of the $1 price point restriction is not raising retail on its current offerings priced at $1.
"With its ‘Everything’s a Dollar’ model, Dollar Tree has remained one of the most unique, differentiated and defensible brand concepts in all of value retail," Philbin said. "However, we have always been a ‘test-and-learn’ organization that is committed to evaluating all opportunities to deliver great value for our customers while driving long-term value creation. During this test, we look forward to measuring and assessing the initial results and understanding if the introduction of multiple price points across a broader set of stores is in the best interests of our customers, Company and shareholders.”
In March, Dollar Tree announced it was closing up to Family Dollar stores this year, and rebranding more under the Dollar Tree banner. During the first quarter, Dollar Tree opened 91 stores, expanded or relocated 11 stores, and closed 16 Family Dollar stores and nine Dollar Tree stores. Additionally, the company opened 45 Dollar Tree stores that were re-bannered from Family Dollar, according to company reports.
Paris is home to two Family Dollars, one on Clarksville Street and another on Bonham Street, in addition to a Dollar Tree on Lamar Avenue.
Klark Byrd is the managing editor of The Paris News. He can be reached at or [email protected]
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About Dollar Tree
Address: Chesapeake, Virginia
Industries: Food and Beverage, E-Commerce, Service Industry, Family, Retail
Founded on: January 1st,
Number of Employees: 10,,,
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Years of Experience
This data is based on survey responses.
Avg. Hourly Rate: $8 - $14
Avg. Hourly Rate: $8 - $15
This data is based on survey responses. Learn more about the gender pay gap.
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American discount variety chain
Dollar Tree store in Griffin, Georgia
|Industry||Retail, variety, discount|
|Founded||; 35years ago()|
Norfolk, Virginia, U.S.
Number of locations
|15, (February ) |
|United States, Canada|
|Mike Witynski (CEO)|
|Products||Food and snacks, health and beauty care products, housewares, books and toys|
|Total assets||US$ billion()|
|Total equity||US$ billion()|
Number of employees
|Divisions||Dollar Tree Canada|
Dollar Tree, formerly known as Only $, is an American multi-price-point chain of discountvariety stores. Headquartered in Chesapeake, Virginia, it is a Fortune company and operates 15, stores throughout the 48 contiguous U.S. states and Canada. Its stores are supported by a nationwide logistics network of twenty four distribution centers. Additionally, the company operates stores under the name of Dollar Bills, as well as a multi-price-point variety chain under the Family Dollar banner.
Dollar Tree competes in the dollar store and low-end retail markets. Each Dollar Tree stocks a variety of products including national, regional, and private-label brands. Departments found in a Dollar Tree store include health and beauty, food and snacks, party, seasonal décor, housewares, glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft supplies, teaching supplies, automotive, electronics, pet supplies, and books. Most Dollar Tree stores also sell frozen foods and dairy items such as milk, eggs, pizza, ice cream, frozen dinners, and pre-made baked goods. In August , the company began accepting manufacturer's coupons at all of its store locations.
In , K. R. Perry opened a Ben Franklin variety store in Norfolk, Virginia, which later became known as K&K 5&10.
In , K. R. Perry, Doug Perry, and Macon Brock started K&K Toys in Norfolk, Virginia. This mall concept grew to over stores on the East Coast.
In , Doug Perry, Macon Brock, and Ray Compton started another chain store called Only $ with five stores, one in Georgia, one in Tennessee, and three in Virginia. The expansion of dollar stores was continued alongside K&K Toys stores, mostly in enclosed malls.
In , the corporation made a decision to focus exclusively on the expansion of dollar stores after selling K&K stores to KB Toys, owned by Melville Corporation.
In , the name Only $ was changed to Dollar Tree Stores to address what could be a multi-price-point strategy in the future, and part equity interest was sold to SKM partners, a private equity firm.
Brock and the co-founders of Dollar Tree got the idea for the company from another retailer known as Everything's A Dollar, which went bankrupt in the s.
On March 6, , Dollar Tree, Inc. went public on the NASDAQ exchange at $15 a share, with a market cap then calculated at $ million.
In , Dollar Tree acquired Dollar Bill$, Inc., a Chicago-based chain of stores.
In , the company opened its first distribution center and its new store support center, both located in Chesapeake, Virginia.
In , Dollar Tree acquired Cent Clearance Centers in California.
In , Dollar Tree acquired Only $One stores based in New York state. That same year, the company opened its second distribution center in Olive Branch, Mississippi.
In , Dollar Tree acquired Dollar Express, a Philadelphia-based company, and also built a new distribution center in Stockton, California. In , the company opened two additional distribution centers, in Savannah, Georgia, and Briar Creek, Pennsylvania. In , Dollar Tree acquired Salt Lake City, Utah-based Greenbacks, Inc., and opened a new distribution center in Marietta, Oklahoma.
In , Dollar Tree opened its first store in North Dakota which marked its operation of stores in all 48 contiguous states. The company also opened new distribution centers in Joliet, Illinois, and Ridgefield, Washington.
In , Dollar Tree celebrated its 20th year of retailing at a $ price point, opened its 3,th store, and acquired DEAL$ stores, previously owned by SUPERVALU INC.
In , Dollar Tree expanded its Briar Creek Distribution Center, crossed the $4 billion sales threshold, and had a market capitalization of $ billion. In , Dollar Tree earned a place in the Fortune By the close of , the company opened a store in Washington, D.C., and purchased a new distribution center in San Bernardino, California.
In , Dollar Tree redesigned its website with a new e-commerce platform. DollarTree.com sells Dollar Tree merchandise in larger quantities to individuals, small businesses, and organizations. The company also advertises in-store events, specials, seasonal promotions, and featured products through the site and users can locate a retail store, research information about Dollar Tree, and view product recalls. Dollar Tree also recently added customer ratings and reviews and customer stories to the site.
In , the corporation opened its 4,th chain store and acquired 86 Canadian Dollar Giant stores which are based in Vancouver, British Columbia. The stores are operated in British Columbia, Alberta, Saskatchewan and Ontario. These are the first retail locations outside of the United States operated by Dollar Tree.
In , Dollar Tree achieved total sales of $ billion, opened new stores, and completed a , square-foot expansion of its distribution center in Savannah, Georgia.
In , Dollar Tree opened another new stores and exceeded $7 billion in sales, with an end-of-the-year market cap at $ billion.
On July 28, , Dollar Tree announced that it was offering $ billion for the purchase of competitor chain store Family Dollar. On August 18, , Dollar General lodged a competing bid of $ billion for Family Dollar. The bid was rejected on August 20, , by the Family Dollar board, which said it would proceed with the deal with Dollar Tree.
In January , Dollar Tree announced plans to divest stores in order to appease US regulators scrutinizing its proposed takeover of Family Dollar stores.
In June , the firm agreed to sell stores to private equity company Sycamore Partners as part of the approval process for its $ billion takeover of Family Dollar.
The company was ranked on the Fortune list of the United States corporations by revenue.
In March , as part of its reposition plan, Dollar Tree announced that it will close up to Family Dollar stores along with renovating 1, other locations.
On March 3, , it was announced that Dollar Tree had quietly introduced a combination Family Dollar/Dollar Tree store concept with the first one opening in late Dollar Tree has opened and operated nearly 50 locations by the end of , primarily in small towns with populations of just a few thousand people.
On September 28, , CEO Michael Wytinski, citing increased shipping and labor costs squeezing profit margins, announced that some prices will be rising above $1, possibly to as much as $
Dollar Tree is classified as an extreme discount store. It claims to be able to achieve this because their buyers "work extremely hard to find the best bargains out there", and it has "great control over the tremendous buying power at the dollar price-point". Its prices are primarily designed to attract financially disadvantaged customers, but it has also become popular within immigrant communities.
Family Dollar bidding
On July 28, , Dollar Tree announced that a deal had been reached and approved by both parties to purchase Family Dollar for $ billion plus acquisition of the $1 billion in debt currently held by Family Dollar. The deal came in the month following activist investor and major shareholderCarl Icahn's demand that Family Dollar be promptly put up for sale. After their reported deal had been struck, Dollar General entered the bidding, surpassing Dollar Tree's offer, with a $ billion bid on August 18,  On August 20, , Family Dollar rejected the Dollar General bid, saying it was not a matter of price, but concerns over antitrust issues that had convinced the company and its advisers that the deal could not be concluded on the terms proposed. The Family Dollar board had been analyzing potential antitrust issues that could arise from doing a deal with Dollar General, since the start of the year a statement from CEO Howard Levine outlined.
Dollar Tree stores in Canada sell items for C$ or less. On October 11, , Dollar Tree announced its acquisition of Dollar Giant, originally incorporated in in Vancouver, Canada, for $52 million. At the time of the acquisition, Dollar Giant had about 85 retail outlets in the provinces of British Columbia, Alberta, Saskatchewan and Ontario. Approximately 30 of its retail locations are in British Columbia, making it the second largest dollar store chain in that province. It was Canada's fourth largest operator of dollar stores. Dollar Tree has since rebranded all of its Dollar Giant stores to Dollar Tree; these were the first retail locations outside of the United States operated by Dollar Tree. The company now operates stores across Canada, concentrated in Western Canada and Ontario. Dollar Tree Canada's merchandising team is located in Mississauga, Ontario, while its corporate office remains in Burnaby in Greater Vancouver.
The Consumer Product Safety Commission lists several recalls for products sold at Dollar Tree stores. The recalled products include salsa jars with broken glass inside them, hot-melt mini glue guns (recalled in January ) which could short circuit and cause burns, and candle sets (recalled in February ) which could produce excessive flame.
- ^ abcdefgh"Dollar Tree, Inc. Annual Report (Form K)". sec.gov. U.S. Securities and Exchange Commission. March
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- ^MENT, JONATHAN. "Dollar Tree to open Ulster Avenue branch soon". Daily Freeman. Retrieved May 13,
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- ^Paul Ziobro and Shelly Banjo (July 28, ). "Battle for Poor Shoppers Fuels Dollar-Store Deal". WSJ. Retrieved May 17,
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- ^Davidson, Paul; Shell, Adam. "Dollar General offers $B for Family Dollar". The USA Today. Retrieved August 18,
- ^"Home". Dollar Tree Canada. Retrieved January 9,
- ^"Dollar Tree Announces Definitive Agreement to Acquire Canadian Dollar Giant Stores" (Press release). Business Wire. October 11, Retrieved October 3,
- ^"Dollar Tree to buy Dollar Giant stores for $52M". Bloomberg Businessweek. Bloomberg L.P. October 11, Archived from the original on March 12, Retrieved October 3,
- ^"Dollar Giant is now Dollar Tree Canada! - Dollar Tree Canada". dollartreecanada.com. Archived from the original on June 16, Retrieved May 17,
- ^"Contact Us". Retrieved January 9,
- ^Hot glue gun recallArchived September 17, , at the Wayback Machine, cpsc.gov
- ^Candle set recallArchived September 20, , at the Wayback Machine, cpsc.gov
Family Dollar store in Valdosta, Georgia
|Industry||Retail, Variety, Discount|
|Founded||; 62years ago()|
Charlotte, North Carolina, U.S.
Number of locations
|Gary Philbin, President & CEO|
Howard R. Levine, Chairman
|Products||Clothing, cleaning supplies, home decor, and grocery.|
|Revenue||US$ billion ()|
|US$ million ()|
|Total assets||US$ billion ()|
Number of employees
|Parent||Dollar Tree (–present)|
Family Dollar is an American variety store chain. With over 8, locations in all states except Alaska, Hawaii, Oregon and Washington, it was the second largest retailer of its type in the United States until it was acquired by Dollar Tree in and its headquarters operations were moved from Matthews, a suburb of Charlotte, North Carolina, to Chesapeake, a suburb of Norfolk, Virginia.
In June , activist investor and major shareholderCarl Icahn demanded that Family Dollar be immediately put up for sale.
On July 28, , Dollar Tree announced that it would buy Family Dollar for $ billion. The sale delivered a windfall to the company's biggest shareholder Carl Icahn, who acquired his percent stake in June  On January 22, , Family Dollar shareholders approved the Dollar Tree bid.
Family Dollar was founded in by Leon Levine, a year-old entrepreneur. In November of that year, the company's first store was opened, in Charlotte, North Carolina. In , their first store in South Carolina opened, followed by stores in Georgia and Virginia, which were opened in and , respectively. During the s, the store company was largely a southern United States operation. By , there were fifty stores in Charlotte alone.
The s were growing years for the store chain. In , Family Dollar's stock went public for the first time, at $ per share. In , the chain's th store opened, followed by their th in and their th in Also in , a distribution center was opened in Matthews, North Carolina. In , Family Dollar stock began trading at the New York Stock Exchange.
In , the chain's th store was opened, followed by a th store in and a th in The s saw expansion at a wider scale for the company, and by , 1, stores were operating.
The s saw the pace of expansion slow down compared to the s, with 1, stores opened. The company opened distribution centers in West Memphis, Arkansas; Front Royal, Virginia and Duncan, Oklahoma. Since , the pace of growth increased significantly, with the addition of about 3, new stores, and new distribution centers opening in Morehead, Kentucky; Maquoketa, Iowa; Odessa, Texas; Marianna, Florida; and Rome, New York.
In , Family Dollar joined the S&P stock market index. In , the company joined the Fortune list of largest publicly held companies.
When Leon Levine retired in , his son Howard R. Levine succeeded him as Chairman and CEO, keeping this multibillion-dollar company in the family.
In March , Family Dollar restated the company's fiscal to fiscal earnings per share downward by 2 cents to 3 cents a year, to correct lease-accounting issues.
As of August , there were 7, stores in 44 states. According to their website in , Family Dollar opened new stores, more in , and an additional in According to the Company's Corporate Profile in , Family Dollar opened new stores, more in , in , and an additional in On October 3, , Family Dollar said they will open stores in  The next day, Family Dollar partnered with Healthways. Family Dollar operates 11 distribution centers - the latest of which opened in St. George, Utah on October 16, 
In March , Family Dollar rejected a takeover offer by Nelson Peltz's Trian Fund Management reportedly between $55 and $60 a share.
On June 6, , activist investor Carl Icahn disclosed that his firm, Icahn Enterprises, held a % stake in Family Dollar. On June 19, , Icahn demanded in an open letter that Family Dollar be put up for sale immediately.Goldman Sachs and other analysts had identified a number of potential buyers.
As of June 19, , 22% of Family Dollar's shares were controlled by activist investors.
Acquisition by Dollar Tree
On July 28, , Dollar Tree announced that it would acquire Family Dollar for $ per share, a deal valuing Family Dollar at $ billion, and that Dollar Tree would also assume $1 billion in debt currently owed by Family Dollar, for a total of $ billion. Dollar Tree CEO Bob Sasser said that Family Dollar CEO Howard R. Levine will remain with the company following the merger and will be appointed to Dollar Tree's board of directors.Dollar General entered the bidding, shortly thereafter, surpassing Dollar Tree's offer on August 18, , $ a share compared to Dollar Tree's offer of $ a share. The enterprise value of the Dollar General bid was $ billion compared to that of Dollar Tree of $ billion, while the quantum return to shareholders was varying as the stock and cash deal valuation was subjected to fluctuations of price of the competing bidders stock. On August 20, , Family Dollar rejected the Dollar General bid, saying it was not a matter of price, but concerns over antitrust issues that had convinced the company and its advisers that the deal could not be concluded on the terms proposed. Days after, Dollar General CEO Rick Dreiling sent a letter to the Family Dollar board of directors claiming that Levine rejected merger requests to protect his job. Levine, in a statement, said the Family Dollar board had been analyzing potential antitrust issues that could arise from doing a deal with Dollar General since the start of the year, and that was the reason it was not accepting the Dollar General bid.
On January 22, , Family Dollar shareholders approved the Dollar Tree bid.
Several stores were required to be sold as a condition of the sale. Sycamore Partners acquired the stores in under the corporate name Dollar Express. The stores continued to operate under the Family Dollar name. In , Dollar General acquired Dollar Express and converted the stores.
As a result of Family Dollar's sale to Dollar Tree, some Family Dollar stores have opened in the same plaza, and at times even next door to Dollar Tree locations. On March 6, , the retailer announced that it will close up to stores nationwide due to heavy pressure from an activist investor. Most store locations were either shut down entirely or replaced with Dollar Tree stores.
The company has deployed a newer store format known as "H2" in new and renovated locations, which have a larger focus on groceries and incorporate Dollar Tree merchandise. The company has also deployed co-branded Family Dollar/Dollar Tree stores in smaller markets.
- ^ abcKilgore, Tomi. "Dollar Tree to close Family Dollar HQ, offer relocation to employees". MarketWatch.
- ^ ab"fdosch13dhtm". www.sec.gov. Retrieved
- ^ ab"fdosch13damdex1.htm". www.sec.gov. Retrieved
- ^ abKumar, Devika Krishna. "Dollar Tree to buy Family Dollar to stave off competition". U.S. Archived from the original on July 28, Retrieved
- ^ ab"Charlotte region loses corporate headquarters in Family Dollar buyout". The Charlotte Observer. Archived from the original on Retrieved
- ^ abc"Family Dollar rejects $ bn acquisition bid by Dollar General". Charlotte News.Net. 21 August Retrieved 22 August
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- ^October 16, hudrockson; Reply, at pm Log in to. "Family Dollar to celebrate grand opening of St. George distribution center". Retrieved
- ^Burritt, Chris (March 3, ). "Family Dollar Rejects Buyout Offer From Peltz's Trian, Adopts Poison Pill". Bloomberg.
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- ^"Icahn's Sale Urgency Isn't Family Dollar's First Rodeo". Yahoo Finance. 20 June
- ^"Battle for Poor Shoppers Fuels Dollar-Store Deal". Wall Street Journal. 28 July
- ^Davidson, Paul; Shell, Adam. "Dollar General offers $B for Family Dollar". The USA Today. Retrieved 18 August
- ^Banjo, Shelly. "Family Dollar CEO Said to Reject Merger Requests to Protect Job". The Wall Street Journal. Retrieved 22 August
- ^"Dollar Express Chain Sells Out To Competitor Dollar General After Years". Consumerist. Retrieved
- ^Berke, Ben. "Another day, another dollar store in Stoughton". The Enterprise, Brockton, MA. Retrieved
- ^"Family Dollar will close nearly stores". WCPO. March 6,
- ^Mar. 07, Greg Lindenberg on; "Dollar Tree to Close, Rebrand Hundreds of Family Dollar Stores". Winsight Grocery Business. Retrieved CS1 maint: numeric names: authors list (link)
- ^Mar. 03, Jon Springer on; "Dollar Tree Lauds Rollout of Dual-Branded Combo Stores". Winsight Grocery Business. Retrieved CS1 maint: numeric names: authors list (link)
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As a result, she was not deprived of the opportunity to breathe, but the pressure on her throat remained, and it seemed that it would slowly drive the poor thing. Crazy. After that, she took the same position, and Mark took a couple of steps back and looked at the work of his.