Dollar Tree to buy Family Dollar for $8.5 billion

[mahatmakanejeeves]

Last edited Mon Jul 28, 2014, 10:39 AM - Edit history (2)

I like Dollar Tree, because everything in the store really does cost no more than $1. You can't find Ferrara Pan Atomic FireBalls in supermarkets, because industry giants Hershey's and Mars have bought up all the shelf space. You buy one of their products, or you get nothing. At a local candy store, Atomic FireBalls are nearly $12 per pound. Dollar Tree sells a six-ounce bag for - wait for it - $1.

I saw a TV remote control at the Dollar Tree. The price? Yep, $1. No other "dollar store" I know of actually has an upper price limit of $1.

Dollar Tree to buy Family Dollar for $8.5 billion

The Associated Press
© July 28, 2014
NEW YORK

Dollar Tree is buying rival discount store Family Dollar in a cash-and-stock deal valued at about $8.5 billion.
....

Core customers for bargain stores and major retailers like Wal-Mart have been among the hardest hit by the recession and its aftermath because of job instability.

Family Dollar has struggled and has attempted to reinvigorate sales by lowering prices on almost 1,000 basic items. It's cut some jobs and shuttered underperforming stores.

[femmocrat]

1. I like Dollar Tree, too.

Their stores are clean and well-stocked. Their own brand of cleaning products are pretty good, too. We are supposed to get some kind of dollar store here in the near future. I hope it's a Dollar Tree!

[djean111]

2. Living on Social Security, I depend on Dollar Tree for lots of stuff.

And now, paying more than a dollar for some things seems stupid.
I don't eat much bread at all these days, but the local Dollar Tree has started to carry the same breads as Publix. Same delivery truck, same bread, same sell-by dates. All a dollar, instead of 2 to 3 and up.
Some things I can find cheaper, like tuna, but they usually have great closeouts or deals on soup, decent hardcover books, dish detergent (Ajax), etc. Some packages of pasta or rice have gotten a bit smaller, but still a good deal. I think Walmart will eventually be squeezed by the real dollar stores on prices, and stores like Publix on quality (and prices).

Family Dollar and Dollar General, IMO, are a bit predatory, priced higher than I was expecting and very low quality. Sort of like K-Mart.

Be interesting to see (I hope) Family Dollar convert to Dollar Tree values.

[femmocrat]

5. The Dollar General store here is a dump.

And as you say, a misnomer. I can get some items cheaper at the neighboring supermarket.

[Scuba]

3. $8.5 billion? Why not for a dollar?

[mahatmakanejeeves]

4. Because it's Dollar Tree that is buying Family Dollar.

Had it been the other way, I'm sure that Family Dollar would have paid no more than $1 for Dollar Tree.

[Auggie]

6. +1

[Sherman A1]

7. Good

Family Dollar has been pretty rudderless of late it seems. Hopefully Dollar Tree will clean house of the executive types and get the stores cleaned up, stocked and ready to do business. Most likely this will result in a net loss of jobs and probably closing of some stores (Family Dollar had already announced some closings) but one can hope not too many folks suffer job loss.