A major shake-up is on the horizon for one of America’s most familiar discount chains. Earlier this month, Dollar Tree — which bought Family Dollar in 2015 for nearly $9 billion — announced it is selling the brand to Brigade Capital Management and Macellum Capital for only $1 billion. As a result, more than 1,000 combo stores that house both Family Dollar and Dollar Tree under one roof are shutting down, leaving shoppers and industry watchers alike wondering what this means for the future of the discount retail market in the country.
Why Family Dollar Is Being Sold Off
As previously mentioned, private equity firms Brigade Capital Management and Macellum Capital Management are stepping in with plans to breathe new life into the struggling Family Dollar brand. While the transaction still requires regulatory approval, it’s expected to move forward sometime in the next quarter.
“After weighing our options, the leadership team and Board believe that handing the reins of Family Dollar to Brigade and Macellum offers the best path forward,” Dollar Tree said in a statement. “This deal delivers value for our shareholders and gives Family Dollar a better shot at a comeback.”
Family Dollar currently operates around 8,000 stores across the United States, primarily serving lower-income neighborhoods in urban areas. Despite offering budget-friendly merchandise typically priced between $1 and $10, the retailer has faced ongoing challenges that even deep discounts couldn’t overcome.
Which Family Dollar Locations Are Closing?
According to FinanceBuzz, over 1,900 Family Dollar stores are slated to close, including more than 600 locations that shut down in 2024, as well as over 1,000 combo stores that feature both Family Dollar and Dollar Tree in a single building.
These closures will primarily impact lower-income communities, where families rely on discount stores for essential, budget-friendly household goods.
Though the sale of Family Dollar is expected to be finalized by June 2025 and specific closure locations have yet to be announced, here are the Family Dollar stores that have already closed:
- Alabama
• 534 Lawrence St., Slocomb - Florida
• 233 E. State St., Jacksonville
• 7001 Merrill Road, Jacksonville
• 556 Monument Road, Jacksonville
• 540 W. Brevard St., Tallahassee - Illinois
• 3116 N. Sterling Ave., Peoria
• 820 NE Jefferson St., Peoria - Kansas
• 800 Kansas Ave., Kansas City
• 1999 N. 63rd Drive, Kansas City
• 826 N. Roosevelt St., Marion
• 309 E. 9th St., Peabody
• 322 E 13th St N., Wichita - Kentucky
• 431 W. Oak St., Louisville
• 1250 Bardstown Road, Louisville - Minnesota
• 507 N Sibley Ave., Litchfield - Missouri
• 200 E. Tilden St., Humansville
• 503 E. Main St., Willow Springs - Nebraska
• 1820 10th St., Gering - New Jersey
• 6 Highway 36 East, Middletown
• Chambers St., Trenton
• E. State St., Trenton - North Carolina
• 4840 Carolina Beach Road, Wilmington
• 1313 Greenfield St., Wilmington - Ohio
• 19 N. Arlington St., Akron
• 580 Vernon Odom Blvd., Akron
• 360 N. Main St., Amsterdam
• 2138 Route 45, Austinburg
• 15978 Cleveland-East Liverpool Road, Beloit
• 531 W. Plane St., Bethel
• 8920 State Route 160, Bidwell
• 7990 Reading Road, Cincinnati
• 5527 Bridgetown Road, Cincinnati
• 3407 Harrison Ave., Cincinnati
• 229 Waycross Road, Cincinnati
• 9302 Miles Ave., Cleveland
• 1250 E. 105th St., Cleveland
• 2372 Cleveland Ave., Columbus
• 3577 E. Livingston Ave., Columbus
• 675 E. Hudson St., Columbus
• 2191 E. 5th Ave., Columbus
• 16160 Township Road 287, Conesville
• 349 Cambridge St. N., Cumberland
• 440 N. James H. McGee Blvd., Dayton
• 15 Walnut St., East Liverpool
• 400 Oberlin Road, Elyria
• 2101 Central Point Parkway, Lima
• 7731 State Route 139, Lucasville
• 6704 N. Ridge Road, Madison
• 8050 Hamilton Ave., Mount Healthy
• 199 S. Riverside Drive, New Miami
• 11045 Main St., New Middletown
• 650 N. University Blvd., Middletown
• 511 S. Breiel Blvd., Middletown
• 930 Elm St., Raccine
• 519 S. 2nd St., Ripley
• 1121 N. Reynolds Road, Toledo
• 440 N. James H. McGee Blvd., West Dayton
• 4450 Mahoning Ave., Youngstown
• 8578 Market St., Youngstown - Pennsylvania
• 1325 Point Breeze Avenue, Philadelphia
• 4701 West Girard Avenue, Philadelphia
• 1925 West Allegheny Avenue, Philadelphia
• 1955 West Hunting Park Avenue, Philadelphia
• 2201 West Cambria Street, Philadelphia
• 2459 Kensington Avenue, Philadelphia
• 3300 Penn Ave., Pittsburgh
• 400 E. Pittsburgh Ave., Greenburg - South Carolina
• 4403 Jefferson Davis Highway, Clearwater - Texas
• 304 State Highway 185 N., Seadrift - Virginia
• 3516 Campbell Ave., Lynchburg
• 408 Federal St., Lynchburg - West Virginia
• 388 Beverly Pike, Elkins - Wisconsin
• 320 Lincoln Ave., Fennimore
The Issues Behind Family Dollar’s Decline
Family Dollar’s struggles have accumulated over time. According to analysts, these include inconsistent pricing that failed to reflect its discount appeal, an aggressive expansion strategy that overextended the company’s resources, and fierce competition from retail giants like Walmart, resulting in retail burnout.
“The sale wraps up a rocky era for Dollar Tree,” wrote Neil Saunders, a retail expert at GlobalData, in a note to clients on April 2nd (via El Adelantado). “They definitely bit off more than they could scan at the register.”
Family Dollar’s sell-off comes when the dollar store sector is facing significant challenges. Inflation has driven up operational costs, and lower-income shoppers—who make up the majority of Family Dollar’s clientele—are feeling the financial strain. Additionally, tariffs implemented during President Donald Trump’s administration have placed extra pressure on the shelves.
During a recent call with analysts, Dollar Tree CEO Michael Creedon acknowledged that the said tariffs have caused “uncertainty and volatility,” but Dollar Tree is making adjustments by switching suppliers and contemplating price hikes to help mitigate the impact.
Did Dollar Tree’s Family Dollar Acquisition Pay Off?
When Dollar Tree acquired Family Dollar, the expectation was that it would provide the competitive edge needed to challenge retail giants. The merger aimed to attract more shoppers, cut costs, and prevent Dollar General—its biggest rival, with a stronghold in rural America—from gaining further ground.
However, what was meant to be a savvy bargain buy quickly turned into a costly misstep. Analysts argue that the two brands struggled to mesh, leaving Dollar Tree overwhelmed by the sprawling network of Family Dollar stores.
Things took a turn for the worse when many of these stores turned out to be in worse shape than expected. Efforts to boost sales, such as adding beer to the shelves, fizzled out almost immediately. Additionally, many locations were located close to one another, cannibalizing each other’s foot traffic rather than attracting new customers.
Just a year later, an activist investor raised concerns, urging Dollar Tree to offload the underperforming Family Dollar brand. Shortly after, the company announced plans to close hundreds of locations.
Though thousands of Family Dollar stores have received some cosmetic improvements in recent years, analysts note that many still appear to be stuck in the past, with outdated interiors that suggest they’ve seen better—and far more profitable—times.
How Will Dollar Tree’s Sale of Family Dollar Impact the Discount Retail Market?
This move also signals that consolidation within the budget retail space may not always guarantee success. While the initial merger promised expanded market reach and cost savings, the reality proved more complicated as operational inefficiencies and brand clashes took their toll.
For the future of the budget retail industry, Dollar Tree’s sell-off could lead to a wave of similar restructuring. As companies reconsider their strategies for maintaining a foothold in the discount sector, we may see more brands either divesting underperforming segments or focusing on refining their core offerings. This could ultimately reshape the competitive landscape, with retailers needing to rethink how they cater to lower-income consumers in an era of financial uncertainty.