Dollar Tree is moving into 99 Cents Only stores

Dollar Tree is moving into 99 Cents Only stores

Goodbye Only 99 Cents. Hello Dollar Tree.

Dollar Tree announced Wednesday it has secured leases for 170 of its 99 Cents Only stores out of bankruptcy in Arizona, California, Nevada and Texas. Dollar Tree will reopen these stores with its own products under its brand starting in the fall.

99 Cents Only filed for bankruptcy in April and closed all 370 of its locations.

The two chains are very different, and the announcement is a sign of consolidation in the retail industry.

99 Cents Only is a regional chain and sells groceries. Dollar Tree, a national company with mostly suburban locations, primarily offers discretionary items such as party supplies and home goods. Dollar Tree is the last dollar store chain to sell everything for $1 before raising prices in 2021 to $1.25 and up.

Dollar Tree also owns Family Dollar, mostly based in the city. Family Dollar has underperformed Dollar Tree and other discount chains in recent years, and it is closing 975 stores.

99 Cents Only’s acquisition of the lease out of bankruptcy gives Dollar Tree a cheaper way to expand than building new stores and helps the Virginia-based chain expand its reach on the West Coast.

“Management feels that these locations are fundamentally sound and in relatively short supply, so they are taking advantage of competitors’ weaknesses,” Michael Montani, an analyst at Evercore IRI, wrote in a note to clients Wednesday.

One challenge for Dollar Tree could be the size of the 99 Cents Only stores.

99 Cents Only stores average about 20,000 square feet, more than twice the size of a typical dollar store chain.

About Kepala Bergetar

Kepala Bergetar Kbergetar Live dfm2u Melayu Tonton dan Download Video Drama, Rindu Awak Separuh Nyawa, Pencuri Movie, Layan Drama Online.

Leave a Reply

Your email address will not be published. Required fields are marked *