Tags: inflation | economy | spending | consumer | dollar tree | family dollar

Dollar Tree to Explore Sale of Family Dollar

Wednesday, 05 June 2024 09:02 AM EDT

Dollar Tree plans to explore options including a potential sale or spinoff of Family Dollar, The Wall Street Journal reported Wednesday, citing people familiar with the matter.

Shares of Dollar Tree rose 2% in premarket trading following the report.

The company has been grappling with weak demand on the back of stiff competition from larger players such as Walmart and Target, who have also been pushing to offer products at lower price points to attract inflation-hit consumers to their stores.

Family Dollar, which Dollar Tree bought for $8.5 billion in 2015, has been the main underperformer for the company.

Dollar Tree had said in November last year it was going to review the business. It outlined plans to shutter 970 of its Family Dollar stores earlier in 2024.

CEO Richard Dreiling had noted in March that the Family Dollar business was continuing to be hurt by macroeconomic uncertainties.

The company, like many retailers, has seen sales take a hit from consumers paring back spending on higher-margin products like electronics and furnishings since 2022. In an attempt to revive demand, it has also introduced products at price points such as $3 and $5.

Dollar Tree currently has a market capitalization of $26 billion. It has raked in about $31 billion in annual revenue, of which Family Dollar accounted for 45%.

According to the WSJ report, Dollar Tree is expected to announce its plans publicly later on Wednesday when it reports its first-quarter results. The company has retained JPMorgan Chase to lead the review, the report said.

Dollar Tree did not immediately respond to a Reuters request for comment.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
Dollar Tree plans to explore options including a potential sale or spinoff of Family Dollar, The Wall Street Journal reported Wednesday, citing people familiar with the matter.
inflation, economy, spending, consumer, dollar tree, family dollar
267
2024-02-05
Wednesday, 05 June 2024 09:02 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Newsmax2 Live
 
On Now:9:00a ET • Salcedo Live
Coming Up:10:00a ET • The Wendy Bell Show
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© 2025 Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved