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Dollar Tree Considering Sale or Spin-Off of Family Dollar

NATIONAL NEWS (WDNews) – Dollar Tree is mulling over a significant decision regarding its Family Dollar chain. The company, which bought Family Dollar in 2015 for $8.5 billion, might sell or spin off the discount retailer. This move comes as Dollar Tree struggles to resolve the issues it inherited with Family Dollar.

The hoped-for benefits of the merger, such as better competition with bigger rivals, haven’t materialized. Analysts point to messy stores, high prices, and overexpansion as key problems plaguing Family Dollar. Despite these challenges, Dollar Tree’s profit remained nearly flat, reporting $300.1 million for the quarter compared to $299 million last year.

Dollar Tree believes that focusing on its core business, which is performing much better, would be more beneficial. With 16,397 stores across 48 states and parts of Canada, including 7,300 Family Dollar locations, the company is considering divesting to streamline operations and boost overall performance.