Dollar Tree buying rival Family Dollar for $8.5 billion

shesallthat · ‎03-09-2010

interesting!

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Dollar Tree (DLTR) is buying its larger rival Family Dollar (FDO) in a cash and stock deal valued at about $8.5 billion. "This acquisition will extend our reach to lower-income customers and strengthen and diversify our store footprint," Dollar Tree CEO Bob Sasser said in a statement.

Discount chains have been struggling to boost sales as Walmart (WMT) and other retailers invaded their space by offering more items for a buck or less to lure more low-income consumers.

Family Dollar, in particular, has struggled to remain competitive among the deep discounters. Earlier this year, the company slashed prices and announced it would close 370 stores, in an effort compete with rivals like Dollar General (DG) and Walmart, which is diversifying its own retail strategy by building smaller stores that target a different audience that the giant mega-stores.

http://finance.yahoo.com/blogs/hot-stock-minute/dollar-tree-buying-rival-family-dollar-for--8-5-bill...

Elstongunn · ‎03-12-2010

They paid more than $1 for it???

Money doesn't talk; it swears. --Bob Dylan

Topaz Gem · ‎03-10-2010

I heard they are going to continue to operate the stores separately. I rarely go to Family Dollar as the prices aren't that low, but maybe a new owner will improve things.

"Summer afternoon-summer afternoon; to me those have always been the two most beautiful words in the English language." ~Henry James

Linders Back · ‎03-10-2010

How can a dollar store slash their prices? are they going to be the 50¢ store?

The family dollar in my town is scary. I would never shop there and ther prices are all over the place. . I do go to The Dollar Tree (a third chain I guess) where everything in the store is $1. They are the only place I can find ""Reynolds Wrappers"" anymore and I love those.

Hooty · ‎03-09-2010

Most of the Family Dollar stores around here are in rural areas. In the city we have Dollar Tree (which I like) and Dollar General. The Dollar Tree is the "only" one of these stores where everything is only a dollar!

The Family Dollar stores are creepy, and that's just riding by and I have never been inside, don't want to go either!

Topaz Gem · ‎03-10-2010

Linders, Market Basket stores carry Reynolds Wrappers, at least they did before all the recent labor problems. I'm sure they will carry them again once they're back to business as usual. I love the Wrappers too!

"Summer afternoon-summer afternoon; to me those have always been the two most beautiful words in the English language." ~Henry James

AngelPuppy1 · ‎03-13-2010

I frequent both places. We have a Dollar Tree near us that is quite good. I find so many useful things there. I hope they don't increase their prices! It's so helpful to have a place that is so cheap! Family Dollar -- I don't find that much there, but occasionally I will find a bargain or two.

"A day without sunshine is like, you know, night." - Steve Martin

bigLou · ‎09-03-2013

That's a lot of dollars. I guess it finally pays off. Now the owners can retire in style.

gardensla · ‎03-09-2010

I find both of these stores depressing, full of really junky junk and not fun at all.

But, obviously I'm in the minority because that's a lot of dollars!

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misspammie · ‎03-14-2010

On 7/29/2014 gardensla said:
I find both of these stores depressing, full of really junky junk and not fun at all.

But, obviously I'm in the minority because that's a lot of dollars!

ever get a '$10 or $20 gift card for a young child to use there? There's decision upon decision and thoughts of giving to others. It's a good thing (as Martha says)