Dollar Tree Buying Family Dollar

[Alpha8472]

Family Dollar was not doing well. They got away from dollar items and started trying to be more like an everyday low price store such as a small discount store. That actually increased costs for them and caused them to lose money.

Dollar Tree will probably convert the Family Dollar stores back into the dollar format. That seems to be working really well for Dollar Tree. The one dollar price point makes people buy like crazy. You see people loading their shopping carts full of junk just because it is all one dollar. Family Dollar was not a place to load up your cart. In fact, many items were a terrible value. There is one Family Dollar in Davis, California which is in Northern California. This store competes with a Dollar Tree in the same city. This Family Dollar store is the first taste of Family Dollar for Californians. However, there really is no competition as Dollar Tree wins by the shear number of customers.

I believe that Dollar Tree will whip those Family Dollar stores into shape. The name will probably be phased out in favor of Dollar Tree as well.

[BillyGr]

Family Dollar was not doing well. They got away from dollar items and started trying to be more like an everyday low price store such as a small discount store. That actually increased costs for them and caused them to lose money.

Dollar Tree will probably convert the Family Dollar stores back into the dollar format. That seems to be working really well for Dollar Tree. The one dollar price point makes people buy like crazy. You see people loading their shopping carts full of junk just because it is all one dollar. Family Dollar was not a place to load up your cart. In fact, many items were a terrible value. There is one Family Dollar in Davis, California which is in Northern California. This store competes with a Dollar Tree in the same city. This Family Dollar store is the first taste of Family Dollar for Californians. However, there really is no competition as Dollar Tree wins by the shear number of customers.

I believe that Dollar Tree will whip those Family Dollar stores into shape. The name will probably be phased out in favor of Dollar Tree as well.

Dollar Tree also has their Deal$ chain, which offers a more varied pricing format. Seems it would be easier to merge that with Family Dollar, as they are closer in format (not identical, but more similar).
Additionally, it would seem to be a better idea for the future, as it will only get harder to find items that can be sold for just $1 as time goes on and prices increase, where the other 2 stores have more flexibility in being able to offer higher priced items.

But for now, the reports indicate that both chains will stay as separate entities under one corporate structure.

[wnetmacman]

The name will probably be phased out in favor of Dollar Tree as well.

I wouldn't wait on that. Since Dollar Tree already operates Deal$, it wouldn't be that much of a stretch for them to operate Family Dollar. Family Dollar is still profitable, it just isn't *as* profitable as it once was. That scared investors, including Carl Icahn, who likes to make money off his investments. What wouldn't surprise me would be a FD/DT combo store, or something larger like the Dollar General Market. FD hasn't advanced with new formats like the competition.

I'm still waiting to see what will happen to Fred's Super Dollar. I expect Walmart to play a role there, possibly with their Express format (which is very similar).

[Brian Lutz]

http://www.komonews.com/news/business/D ... 05871.html

Apparently this isn't quite settled yet, as Dollar General is now making an $8.95 billion counteroffer against Dollar Tree's $8.5 billion offer. If the competing offer is accepted, Dollar Tree would get a $305 million termination fee.

[Alpha8472]

These dollar stores are cheap to run and make a ton of money. Actually, it is Walmart that has much to fear. Walmart has finally met its match. A cheap dollar store brings in tons of customers and makes a good profit. Dollar stores can pop up on every street corner and are welcomed by cities all over. Walmart on the other hand is not welcomed in all cities and just trying to get a Walmart store approved is met with hostility.

It will be interesting to see who wins the bidding war. I have seen Dollar Tree, but I have no experience with Dollar General. Which one has nicer stores? I have generally found Dollar Tree to be decently run and it provides a decent selection.

[BillyGr]

It will be interesting to see who wins the bidding war. I have seen Dollar Tree, but I have no experience with Dollar General. Which one has nicer stores? I have generally found Dollar Tree to be decently run and it provides a decent selection.

Truthfully, all three have good and bad stores, the better ones tending to be the newer built locations.
The newer stores are larger, which helps (as the smaller stores try to squeeze in as much as possible, making them messier and harder to navigate).

[bm10k]

Looks Like It's Official

http://www.marketwatch.com/story/family ... 2015-01-22

[norcalriteaidclerk]

These dollar stores are cheap to run and make a ton of money. Actually, it is Walmart that has much to fear. Walmart has finally met its match. A cheap dollar store brings in tons of customers and makes a good profit. Dollar stores can pop up on every street corner and are welcomed by cities all over. Walmart on the other hand is not welcomed in all cities and just trying to get a Walmart store approved is met with hostility.

It will be interesting to see who wins the bidding war. I have seen Dollar Tree, but I have no experience with Dollar General. Which one has nicer stores? I have generally found Dollar Tree to be decently run and it provides a decent selection.

Dollar General is already building a sizable Central Valley presence in the past 4 years that includes 6 locations in the Sac Metro(so far).I prefer Dollar General to Dollar Tree based on the better quality of what they sell.I must also note that Family Dollar entered Sac a couple years ago,but their locations are mostly further out(Davis,Lincoln,Valley Mack)from where I live.

[storewanderer]

Dollar General is not a bad store, they have dotted various small towns in my area in Nevada; Sun Valley, New Washoe City, Gardnerville Ranchos, Silver Springs, Hawthorne, and also some of the little California towns such as Quincy and Chester.

Family Dollar has been more aggressive in building in Nevada but seems to be missing in California. So far two Reno Family Dollars have closed and converted to Dollar Tree. I expect more to close. Family Dollar is a dog.

Dollar General isn't a great experience for atmosphere or service but you get in and out quickly and the pricing isn't bad. I am waiting for the day these stores get into the pharmacy business.

I feel 99 Cents Only is a better store than any of these though.

[SamSpade]

Family Dollar has been more aggressive in building in Nevada but seems to be missing in California. So far two Reno Family Dollars have closed and converted to Dollar Tree. I expect more to close. Family Dollar is a dog.

I could see conversions happening in cities or even places with diverse retail options. For example, in Idaho Falls, Idaho, Family Dollar shut down their store and after the merger it has reopened as a Dollar Tree.

But, Family Dollar is the only 'general merchandise' retailer in some small Idaho communities. I would hope they would try to make these stores keep going. (examples: Glenns Ferry, ID, about 45 miles from Mountain Home, ID; Arco, ID, almost an hour from Idaho Falls, ID; St. Anthony, ID, about 15 miles north of Rexburg, ID; Ashton, ID, north of St. Anthony on US 20).

Idaho Falls: Reopened Store street view