Home » Dollar Tree Acquires 99 Cents Only Stores: A New Era for Discount Retail

Dollar Tree Acquires 99 Cents Only Stores: A New Era for Discount Retail

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Dollar Tree Acquires 99 Cents Only Stores: A New Era for Discount Retail

Dollar Tree Acquires 170 99 Cents Only Stores in West Coast

In a strategic transfer, Dollar Tree introduced on Wednesday its acquisition of leases for 170 99 Cents Only shops that had been left over from chapter in Arizona, California, Nevada, and Texas. These shops will likely be reopened within the fall beneath Dollar Tree’s model, with its personal merchandise on the cabinets.

The chapter of 99 Cents Only in April led to the closure of all 370 of its places. The acquisition of those shops by Dollar Tree signifies consolidation within the retail trade, as the 2 chains cater to completely different markets.

While 99 Cents Only targeted on promoting groceries as a regional chain, Dollar Tree is a nationwide firm identified for its suburban places and choices of discretionary merchandise like vacation and residential gadgets. Dollar Tree was the final greenback retailer chain to keep up a $1 pricing mannequin earlier than barely growing costs to $1.25 or extra in 2021.

In addition to Dollar Tree, the corporate additionally owns Family Dollar, which primarily operates in city areas. Due to underperformance in comparison with different low cost chains, Family Dollar is closing 975 shops.

Acquiring leases from 99 Cents Only out of chapter gives Dollar Tree with an economical technique to broaden its presence on the West Coast, relatively than constructing new shops. Analysts imagine the transfer was a sensible one, contemplating the fascinating places and shortage of accessible areas within the area.

One potential problem for Dollar Tree is the dimensions of the 99 Cents Only shops, that are bigger than the everyday greenback retailer chain at over 20,000 sq. ft on common. Despite this, the acquisition is seen as a major alternative for Dollar Tree to strengthen its place within the retail market.

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