Dollar Tree to buy Family Dollar for $8.5 billion

Two national discount retail chains are becoming one after Dollar Tree bought Family Dollar for $8.5 billion.

Family Dollar shareholders saw their stock increase from $60.53 to $74.50 (assuming the deal price) for a 23.7 percent increase. However, it’s not expected to affect the consumer. Dollar Tree says they are keeping the names for each respective franchise and the prices will stay the same. Meaning Dollar Tree items will still be a dollar or less and Family Dollar will still sell quality products for a cheap price. And that’s what makes consumers in Michiana happy.

“They have good quality stuff here and so does family dollar,” Jeff Ballard of Dowagiac, Mich. said. “It gives more competition and more working power for the people.”

Dollar Tree’s biggest competitor, Dollar General, has not been taking the news so well. Their stock was down early Monday morning with this news and also the news of their CEO, Rick Dreiling, retiring in 2015. They too could be looking for someone to buy them out and some are rumoring Wal-Mart may be in the mix.

However, Michiana residents are excited about the future of Dollar Tree and Family Dollar.

“I think this is amazing. I’ve always seen the two as the two discount options, so the idea of them coming together now might mean something big in the future,” Anthony Jacobs of Mishawaka, Ind. said. “I can see it helping Family Dollar a lot with their exposure since you see more Dollar Trees around the community.”

With the merger, Dollar Tree and Family Dollar combine for more than 13,000 stores nationwide and are now worth $18 billion annually. Dollar General on the other hand only has 11,000 stores nationwide with annual revenue at $17.5 billion.


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