Dollar Tree is Coming to 99 Cents
Dollar Tree bought the leases for 170 stores from 99 Cents Only, which went bankrupt. These stores are in Arizona, California, Nevada, and Texas.
Goodbye 99 Cents Only. Hello Dollar Tree.
Dollar Tree announced on Wednesday that it has taken over the leases for 170 stores from 99 Cents Only, which went bankrupt. These stores are in Arizona, California, Nevada, and Texas. Dollar Tree will reopen these stores under its own brand starting in the fall.
99 Cents Only went bankrupt in April and closed all 370 of its stores.
The two stores are very different, but the announcement shows that the retail industry is coming together.
Also Read: Dollar Tree: Your $1
99 Cents Only was a regional store chain that sold groceries. Dollar Tree is a big store found all over the country, usually in the suburbs. They mostly sell things for parties and stuff for your home. Dollar Tree was the last dollar store where everything cost $1, but in 2021, they raised their prices to $1.25 and above.
Dollar Tree also owns Family Dollar, which is mainly in cities. Family Dollar hasn’t done as well as Dollar Tree and other discount stores recently. Because of this, it is closing 975 stores.
Dollar Tree is buying 99-Cents Only store leases from bankruptcy. This is cheaper than building new stores and helps Dollar Tree expand its presence on the West Coast.
“Management believed these locations are valuable and not very common, so they took advantage of their competitors’ problems,” wrote Michael Montani, an analyst at Evercore IRI, in a note to clients on Wednesday.
One problem for Dollar Tree could be that 99-Cents Only stores are bigger.
99 Cents Only stores are about 20,000 square feet big, which is twice as large as most other dollar stores.
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