A US Bankruptcy Court has approved the transfer of designation right for leases of 170 closed 99 Cents Only outlets to Dollar Tree. The stores are located in Arizona, Texas, California, and Nevada, and will be reopened later this year as Dollar Tree outlets. More than a third of the locations are located in Southern California. In addition, and as part of the winning bid, Dollar Tree also acquired the North American Intellectual Property of 99 Cents Only Stores.
Dollar Tree’s recent acquisition of real estate assets in premium retail centers aligns with its strategic vision to expand its brand presence across the western United States. This move, as highlighted by Creedon, the company’s representative, emphasizes their commitment to reaching more customers and communities.
Simultaneously, Dollar Tree announced plans to close 970 stores operating under its Family Dollar brand by 2025, following a loss in Q4 2023. This decision reflects the company’s efforts to optimize its portfolio and streamline operations.
The acquisition of Family Dollar in 2015 for $8.5 billion positioned Dollar Tree as a prominent player in the discount retail sector, with nearly 17,000 stores nationwide, trailing only behind Dollar General.
Despite the expansion, the proliferation of discount stores, or dollar stores, has sparked concerns in some urban areas, leading to regulatory measures such as Chicago’s small-box retailer ordinance. This ordinance aims to curb the over-saturation of dollar stores within neighborhoods and address issues of food deserts by fostering a more diverse retail landscape.
Alderman Matt O’Shea, who spearheaded the ordinance, emphasizes the detrimental impact of dollar stores on existing retailers, particularly grocery stores, and underscores the importance of promoting healthier retail environments in communities. With 149 dollar stores currently operating in Chicago, including those under the Dollar Tree, Dollar General, and Family Dollar banners, the ordinance seeks to address concentration issues in specific neighborhoods.
Read the full article on Globe St.
