Dollar Tree to explore sale of its struggling Family Dollar business

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Retailer,Business,Demand

Dollar Tree is looking to restructure its business amid stiff competition and strained consumer spending

said on Wednesday it was exploring options, including a potential sale or spinoff of its Family Dollar banner, as the retailer looks to restructure its business amid stiff competition and strained consumer spending.

Family Dollar, which Dollar Tree bought for $8.5-billion in 2015, has been the main underperformer for the company. The Family Dollar banner operates 8,359 stores and 10 distribution centers, as of Feb. 3. Overall, Dollar Tree operates more than 16,000 stores. The retailer has also seen sales take a hit from reduced customer spending on more profitable products like electronics and furnishings since 2022. In an attempt to revive demand, it has also introduced products at price points such as $3 and $5.

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