99 Cents Only Stores | Family Dollar | Dollar Tree

Dollar Tree finished the Transacton of 170 ‘99 Cents Only Stores’ waiting for court approval

Dollar Tree, Inc. based on Chesapeake, Virginia has announced that it acquired the lease rights of 170 ’99 Cents Only Stores’

An ending of 99 Cents Only Stores Legacy

99 Cents Only Stores founded in 1982 has announced last month that it was going out of business and announced the closure of its all 371 stores at prominent locations across Arizona, California and Texas. The company once flourished by selling vast range of product at the fixed price of 99 cents, decided to close its door due to compounding challenges it faced.

The main cause was the challenges it face during COVID-19 as well as leading inflation in price and operational cost. This made it difficult for company to maintain its operations despite attempts to restructure and other alternatives. And finally company announced its bankruptcy last month ending the legacy of many years.

Hilco Global began liquidating company assets, furnishings and real estate, started April 5^th at all 371 stores.

About Dollar Tree, Inc.

Dollar Tree, Inc. founded in 1986 is located in Chesapeake, Virginia. It is operating around 15000 stores across U.S and Canada under Dollar Tree, Family Dollar and Dollar Tree Canada banner.

Family Dollar and Dollar Tree:

Dollar Tree acquired Family Dollar in 2015 for 8.5 billion dollars resulted in significant rise in its operation. It has around 8000 Family Dollar stores operating under it in total.

But now Company has decided to shutter about 1000 stores which includes more than 600 of Family Dollar stores by 2025 in less prominent locations to avoid the loss. This decision follows the net loss of around 1.6 billion dollars.

Although, Dollar Tree, Inc. has decided to close the stores but its competitor, Dollar General, has decided to seize the benefit of opportunity and has decided to open 800 more stores across the country expanding its approach further.

Dollar Tree and 99 Cents Only

“As we continue to execute on our accelerated growth strategy for the Dollar Tree brand, this was an attractive opportunity to secure leases in priority markets where we see strong profitable growth potential,” said Michael Creedon.

Dollar Tree, has made a successful bid of 170 recently closed 99 Cents Only stores and is waiting for court approval. Most of these 170 stores are across the prominent locations across southern California, Texas and Arizona.

Company is expecting to welcome all 99 Cents customers as early as fall 2024.

Future of Retail Industry

This bankruptcy of 99 Cents Only as well as closing of stores by Family Dollar and Dollar Tree shows the need for change and adaptability in the retail industry.

In conclusion, the discount retail industry is expecting changes and the closure of hundreds of stores is clear indication of that. It signal the end of era for some brands while an opportunity for others brands.