Dollar Tree buys up 99 Cents Only stores as retail giant looks to make up for closures

Richard Hall
·3-min read
Dollar Tree buys up 99 Cents Only stores as retail giant looks to make up for closures

Dollar Tree will take over nearly half of the shuttered 99 Cents Only stores in the United States after the latter declared bankruptcy last month.

The retail behemoth, which also owns the Family Dollar brand, announced that it had taken over the leases for 170 99 Cents Only locations in Arizona, California, Nevada and Texas.

The move comes at a turbulent time in the dollar store industry, as inflation has stalled a period of rapid growth in recent years.

Dollar Tree announced in March that it would close 600 of its Family Dollar store locations this year and 370 more over the next several years as store leases expire. A further 30 Dollar Tree locations will also close, the company said.

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

Dollar Tree said Wednesday that it had acquired the intellectual property of 99 Cents Only but will operate them under its own brand.

A Dollar General store in Florida. (Copyright 2023 The Associated Press. All rights reserved)
A Dollar General store in Florida. (Copyright 2023 The Associated Press. All rights reserved)

The rapid expansion of dollar stores across the US in recent years has been a retail phenomenon.

The 2008 recession sparked their exponential growth as families searched for ways to reduce their household budgets. The cheap, packaged food they offered met that need.

Between 2018 and 2021, around half of all retail stores that opened in the US were dollar stores, according to research by the University of Toronto. Today, there are more dollar stores than Walmarts, CVS, Walgreens, and Targets combined.

That has made competition between the giants fierce and put a premium on building as large a footprint as possible.

Despite it being in their name, the stores have long given up on selling items for a dollar — and there are subtle differences between the brands. Family Dollar tends to focus on high-poverty neighborhoods, for example, while Dollar General and Dollar Tree aim for lower middle-class and middle-class areas.

Dollar Tree, a Fortune 200 Company, operates more than 16,000 stores in the US and Canada.

The purchase will allow Dollar Tree to rebuild after the closures announced earlier this year.

Michael Creedon, Jr., Dollar Tree’s Chief Operating Officer, said in a statement that the purchase of the 99 Cent Only stores  “complements our existing footprint and will provide us access to high quality real estate assets in premium retail centers, enabling us to rapidly grow the Dollar Tree brand across the western United States, reaching even more customers and communities.”

“Dollar Tree looks forward to welcoming customers from 99 Cents Only Stores as early as fall 2024,” he added.

Dollar stores aren’t the only retailers feeling the pinch.

Iconic northeast chain Stop & Shop is also shuttering an unknown number of stores. The chain is closing “select underperforming store locations” to “ensure the long-term health and future growth” of the company, a spokesperson for Stop & Shop said in a statement to The Independent.

A host of major retailers are also cutting prices in an effort to bring back customers who are tightening their belts due to inflation. Walgreens announced this week it would slash prices across the store, joining Walmart, Amazon and Target in doing the same.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • British couple become wealthier than Larry Fink after £2.5bn BlackRock deal

    A husband and wife duo who built an outdoor theatre on the grounds of their Suffolk farm estate have been catapulted into Britain’s rich list after netting £2bn from the sale of their financial data business.

  • Family with £62k income using Klarna for food shop due to cost of living crisis

    A mum-of-five with a £62k household income has resorted to using Klarna to afford her food shop - due to the cost-of-living crisis. Laura Caine, 40, struggles to cover her family's monthly outgoings using her £1k-a-month universal credit payment and her husband Martin's £50k games programmer salary. The couple have five children - aged 18 to nine - and say feeding the brood three meals a day gets expensive so they have had to use the buy-now-pay-later service. In recent months Laura says she had to use Klarna to afford groceries as she "can't afford" to pay for a big shop upfront. Laura claims both she and Martin have both maxed out their credit cards after their energy bill shot up to £450-a-month from £200.

  • A 9.9% dividend yield! Is this hidden FTSE passive income gem too good to miss?

    This FTSE 100 insurance and investment firm has one of the highest yields in the index, looks set for stellar growth, and appears undervalued to me. The post A 9.9% dividend yield! Is this hidden FTSE passive income gem too good to miss? appeared first on The Motley Fool UK.

  • Major banks slash mortgage rates as Labour victory looms

    Three major lenders have cut mortgage rates ahead of an expected Labour victory this week.

  • This tax has been tinkered with for 60 years – please Labour, leave it alone

    Every chancellor wants to make their mark on history, particularly following a change in colour of the Government.

  • Banks, homebuilders and retailers in focus as London markets brace for Labour election victory

    The UK general election is in focus this week as investors brace for a widely expected Labour landslide that could share price moves across the FTSE 100.

  • How Britain’s wealthiest savers are preparing for a Labour government

    As Conservative grandees fret about a Labour “forever government” after this week’s election, Britain’s most affluent savers and investors are busy making the most of tax reliefs while they still can.

  • 2 boring yet consistent dividend shares investors should consider buying in July

    Some dividend shares offer the potential for regular returns, with a good record and bright future prospects. The post 2 boring yet consistent dividend shares investors should consider buying in July appeared first on The Motley Fool UK.

  • Could the BAE Systems share price be about to collapse?

    The BAE Systems share price has pulled back by 8% over the past month. Our writer considers whether this may be the start of a bigger trend. The post Could the BAE Systems share price be about to collapse? appeared first on The Motley Fool UK.

  • Labour stamp duty crackdown will make first-time buyers £7,000 worse off

    First-time buyers in London will be nearly £7,000 worse off under Labour as the party is set to overhaul the stamp duty exemption.

  • These 3 passive income shares could generate a ton of dividends

    Millions of us invest for dividends. Here, our writer highlights three passive income shares that deliver index-topping returns for investors. The post These 3 passive income shares could generate a ton of dividends appeared first on The Motley Fool UK.

  • Should I buy Ocado shares after a 90% drop?

    Ocado shares have taken a huge hit over the last three-and-a-half years, losing around 90% of their value. Should Edward Sheldon buy them now? The post Should I buy Ocado shares after a 90% drop? appeared first on The Motley Fool UK.

  • The Wealthiest Person in Ireland

    We recently compiled a list of the 11 Wealthiest People in Ireland and in this article, we will look at the richest person in Ireland. Ireland’s Global Positioning Ireland is the second richest country in the world boasting a GDP per capita of $143,179 and a wealth per adult of $247,080. The country has demonstrated […]

  • I’d aim for a second income of £1,200 a month with this high-yield dividend stock

    Investing in dividend stocks via a Stocks and Shares ISA is a great way to build a second income stream, according to this Fool. Here’s one stock to consider. The post I’d aim for a second income of £1,200 a month with this high-yield dividend stock appeared first on The Motley Fool UK.

  • Are FTSE 100 shares STILL cheap? I think so, and here’s one to consider buying in July

    The FTSE 100's up 442 points this year, but bargains remain. Mark Hartley reveals one of his favourite value stocks this month. The post Are FTSE 100 shares STILL cheap? I think so, and here’s one to consider buying in July appeared first on The Motley Fool UK.

  • Best US stocks to buy in July

    We asked our freelance writers to reveal the top US stocks they’d buy in July, which included two Share Advisor 'Fire' recommendations! The post Best US stocks to buy in July appeared first on The Motley Fool UK.

  • The 10 highest dividend-yield FTSE 100 stocks of July 2024

    The top 10 UK income stocks offer dividends as high as 10.2%. Explore and discover these leading FTSE 100 passive income opportunities. The post The 10 highest dividend-yield FTSE 100 stocks of July 2024 appeared first on The Motley Fool UK.

  • How to make sure you don’t get underpaid when it comes to state pension

    Getting less than you were expecting could come as a nasty surprise but there are things you can do about it.

  • The Largest Gold Mine in the World by Production Volume

    In this article, we will take a look at the Largest Gold Mine in the World by Production Volume. We have also compiled a full free list of the 10 Largest Gold Mines in the World by Production Volume. Exploring the Global Gold Industry Gold has been one of the most historic investment assets and […]

  • Airbus jet deliveries rise, but headwinds mount

    STORY: Airbus delivered more jets over the first half of the year, but it's battling mounting headwinds. Industry sources estimate the aerospace giant handed over about 323 new aircraft. That would be up about 2% on last year, with official figures expected next week. But the sources estimate deliveries fell short of targets in June. That would tally with a warning from Airbus last week that it was cutting its goals for the year. It now aims to deliver 770 jets, instead of the 800 initially planned. The firm cited a shortage of engines, structural parts and interiors. As a result it put back plans to raise output of its best-selling A320neo family of jets. It still expects to hit a record rate of 75 per month, but not until 2027 - a year later than expected. Right now it makes 50 per month. There was no comment on the latest reports from Airbus. But some analysts are already cutting their forecasts for its output next year.