Mar 17, 2024 - News

Dollar Tree is still trying to fix Family Dollar

Family Dollar store

Photo: Justin Sullivan/Getty Images

The marriage of Dollar Tree and Family Dollar dates back nearly a decade. But over the years, the two have never quite figured out how to make the union work.

Why it matters: Family Dollar is one of the most well-known corporations from Charlotte. What began as a small shop on Central Avenue in 1959 ballooned into a behemoth that Dollar Tree bought for nearly $9 billion in 2015.

Driving the news: Last week, Dollar Tree announced it will close nearly 1,000 Family Dollar locations in coming years.

  • The closures will leave a void for customers who relied on the low-cost retailer for groceries and other essentials, as Axios' Kelly Tyko and Nathan Bomey reported.

Flashback: Virginia-based Dollar Tree has worked for years to successfully absorb Family Dollar.

  • Dollar Tree has closed underperforming Family Dollar stores, opened new locations, and converted and renovated others, I've reported for the Observer over the years.
  • Dollar Tree has faced pressure from investors to sell Family Dollar.
  • In 2018, Dollar Tree closed the Family Dollar headquarters in Matthews, a move that affected about 900 jobs, marking the end of an era for the local employer.
  • In 2022, Dollar Tree shuttered a Family Dollar distribution facility in Arkansas that had become infested with rats and triggered a massive recall and steep losses.

Yes, but: Despite the challenges the discount retailers have faced, Dollar Tree execs still seem upbeat about Family Dollar.

  • "A well-run Family Dollar is a very, very powerful retail format," CEO Rick Dreiling told analysts during a recent earnings call.

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