Dollar Tree really has a discount for everyone. A group of investor in investment has acceptedbuyThe chain in agitated family dollars for $ 1 billion, a strong loss for the dollar, which acquired it ten years ago for around 9 billion dollars.
Brigade Capital Management and Macellum Capital Management will resume nearly 7,000 family dollar stores. This will make half the number of Dollar Tree stores operates under its umbrella.
Why could Dollar Tree not operate the family dollar?
When Dollar Tree bought Family Dollar in 2015, he escaped that Rival Dollar General in the hope of cementing his status as retailers of the King of retailers on budget. But Dollar Tree quickly learned that he had broken poorly maintained stores and found that Family Dollar had a different clientele that turned out to be difficult to serve.
- Family Dollar serves low -income buyers and sells a range of household items at various prices, but always cheap. Dollar Tree clientele tends to have higher income and tends to use the store for craft and party supplies that mainly cost around $ 1.
- But when the Family Dollar and Dollar Tree stores were close to each other, they were similar enough to cannibalize pedestrian traffic of the other. The company was also faced with strong competition from retailers like Amazon and Walmart.
The icing on the highly reduced cake was the Ministry of Justice Gifle Family Dollar with a record fine of $ 41.6 million to sell items that have been stored in a West Memphis warehouse which was littered not only with living rats, but also dead and in decomposition.
After dropping the luggage in family dollars …Dollar said Yesterday, he won a market share among his higher income clients and can aim to compensate for President Trump’s rates by increasing prices in certain places. In 2021, the chain increase Prices at $ 1.25 saying that this would allow stores to offer a wider range of products.—MM
This report was written by Matty Merritt and was Originally published by Morning beer.
This story was initially presented on Fortune.com
