Dollar Tree is selling its Family Dollar brand to private equity firms Brigade Capital Management and Macellum Capital Management for $1 billion, marking a “strategic exit” after acquiring the chain for $9 billion in 2015.
The initial merger aimed to create a stronger competitor against rivals like Dollar General. However, the performance did not meet expectations. The sale impacts approximately 8,000 Family Dollar stores across the U.S.
This move highlights the distinct customer bases of each brand: Dollar Tree, with its nearly 17,000 locations in the U.S. and Canada, caters to suburban, middle-income shoppers seeking “nice-to-have” items like party supplies, while Family Dollar serves urban areas with essential groceries and household goods.
