Dollar Tree has agreed to sell its Family Dollar brand to private equity firms for just over $1 billion, a sharp decline from the $8.81 billion it paid a decade ago. The move will take Family Dollar private, with expectations for improved growth under new leadership. Dollar Tree's struggles with Family Dollar have been attributed to inflation and theft impacts, as well as increased competition. The strategic decision aims to facilitate Dollar Tree's transformation journey while allowing Family Dollar to better address its market needs.
This is a major milestone in our multi-year transformation journey to help us fully achieve our potential, said Dollar Tree CEO Mike Creedon.
Under the experienced, dynamic leadership of Family Dollar President Jason Nordin, and with the financial support of Brigade and Macellum, Family Dollar will be well-positioned for growth.
Though Dollar Tree and Family Dollar have similar names, they serve different demographics; Dollar Tree often serves suburbs while Family Dollar focuses on urban areas.
Family Dollar has struggled to sell products like home decor and apparel as competitors like Walmart and Amazon gained ground.
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