Dollar Tree has announced that it will be acquiring 170 99 Cents Only stores and rebranding them as Dollar Tree locations. The stores, which are located in Arizona, California, Nevada, and Texas, will be reopened with Dollar Tree’s own products starting in the fall. This move comes after 99 Cents Only filed for bankruptcy in April and closed all 370 of its locations.
The acquisition of 99 Cents Only leases gives Dollar Tree a cost-effective way to expand its operations and reach new markets on the West Coast. While 99 Cents Only was a regional chain that sold groceries, Dollar Tree is a national brand known for offering a variety of discretionary merchandise like party supplies and home goods. In recent years, Family Dollar, another chain owned by Dollar Tree, has struggled compared to Dollar Tree and other discount retailers, resulting in the closure of 975 stores. By acquiring the 99 Cents Only stores, Dollar Tree can capitalize on its competitor’s weakness and strengthen its position in the market.
One challenge Dollar Tree may face is the size of the 99 Cents Only stores, which are on average twice as large as a typical dollar store chain. However, this acquisition allows Dollar Tree to offer more accessibility to customers on the West Coast and grow its footprint in the region. Overall, this strategic move by Dollar Tree showcases the ever-evolving landscape of the retail industry and companies’ need to adapt and expand to remain competitive.
