Penny-pinching parents (and other cost-conscious buyers) are drawn to Family Dollar. The nation's #2 dollar store (behind Dollar General) operates almost 7,900 stores across some 47 US states and Washington, DC. Consumables (food, health and beauty aids, and household items) account for more than 70% of sales; stores also sell apparel, shoes, and linens. Family Dollar runs small neighborhood stores near its fixed-, low- and middle-income customers in rural and urban areas. Most merchandise costs less than $10. Family Dollar was founded in 1959 and in mid-2015 Family Dollar it was acquired by rival Dollar Tree.
Change in Company Type
After shunning a hostile advance in 2011, Family Dollar reaffirmed its own strategic growth plans. Since then, the company has struggled and was subject to pressure from activist investor Carl Icahn to sell itself. In mid-2015, it was acquired by Dollar Tree in an $8.5 billion cash-and-stock deal to create a company with more than 13,200 stores and some $18 billion in sales. Together Dollar Tree and Family Dollar expect to realize annual savings of about $300 million per year.
North Carolina-based Family Dollar Stores has shops in 47 US states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores.
The company operates a chain of general merchandise retail discount stores primarily for low- and middle-income consumers.
Family Dollar accounts for 40% of parent Dollar Tree's fiscal 2016 revenues.
In 2015 Dollar Tree converted all Deals and Dollar Tree Deals stores to one of two primary banners, Dollar Tree or Family Dollar. That year it divested 330 Family Dollar stores, 325 of which were open at the time of the divestiture, to Dollar Express LLC, a portfolio company of Sycamore Partners, in order to satisfy a condition as required by the FTC in connection with its purchase of Family Dollar.