JACKSON, Miss.–Your local Family Dollar is being taken over by Dollar Tree. Under an agreement announced Monday, Family Dollar stores names will likely be changed to Dollar Express. Mississippi is one of 16 states where the merger is happening.
Atty. Gen. Jim Hood said in a news release, that in order to ensure fair competition, Dollar Tree will take over Family Dollar, but will have to sell 300 Family Dollar Stores to a new competitor. Those are the stores that will be rebranded as Dollar Express.
“Dollar stores provide affordable access to household essentials. The states have worked with the FTC, Family Dollar, and Dollar Tree to ensure that the acquisition of Family Dollar does not lessen competition or create a hardship due to increased prices or store closures. As a result of these discussions, the parties do not intend to close or relocate any stores in Mississippi,” said Hood.
Dollar Tree also will be required to report or notify the Attorney General’s Office of future acquisitions, store relocations, or closings.
Dollar Tree operates stores under both the Dollar Tree and Deals banners although there are no Deals stores currently in Mississippi. Stores using the Dollar Tree banner typically price all merchandise for $1. Family Dollar stores offer additional merchandise for slightly higher prices. The stores tend to be smaller in size and are often located within or near neighborhoods.
“These stores are located across Mississippi in both small towns and in our larger cities and suburbs,” said Hood. “We wanted to ensure that competition would remain in areas where these stores were near each other, which will in turn result in the best prices and merchandise.”
Sycamore Partners is expected to acquire the stores being divested over the coming few months and operate them under its Dollar Express banner.
Dollar Tree (NASDAQ: DLTR) is headquartered in Chesapeake, Virginia and operates more than 4,200 stores nationwide. Family Dollar (NYSE: FDO) is headquartered in Matthews, North Carolina and operates more than 8,000 stores nationwide.