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 46 US states and Washington, DC. Consumables (food, health and beauty aids, and household items) account for around 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
In mid-2015, Family Dollar 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.
The company operates a chain of general merchandise retail discount stores primarily for low- and middle-income consumers.
North Carolina-based Family Dollar Stores has shops in 46 US states. Texas is its largest market with 1,027 stores, followed by Florida with 584 stores and Ohio with 469.
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.
Family Dollar targets a lower income customer in urban and rural locations. Its stores continue to operate using multiple price points, serving customers as their 'neighborhood discount store", offering a convenient shopping experience. It benefits from an expanded target customer profile as its parent company utilizes the store concepts of both Dollar Tree and Family Dollar to serve a broader range of customer demographics to drive future growth. Dollar Tree plans to grow its Family Dollar network to 12,000 stores in the years ahead. It typically opens new Family Dollar stores in strip shopping centers, freestanding buildings, and downtown buildings.