Competitors fight over Family Dollar
For a dollar store, Family Dollar has a hefty price tag, and one that its competitors are willing to pay.
For a dollar store, Family Dollar has a hefty price tag, and one that its competitors are willing to pay.
Last month, Dollar Tree bid $8.5 billion to takeover Family Dollar in an attempt to better compete with the dollar store industry’s largest competitor, Dollar General. But in August, Dollar General upped the bid to $9.7 billion. Since Dollar General is already a giant — the company owns 11,000 stores across the states, compared to Family Dollar’s 7,916 stores and Dollar Tree’s 5,000 — if it did win out the bid for Family Dollar, it would have to shut down hundreds of stores to avoid antitrust suits.
The competition isn’t just contained to the dollar store industry either — Walmart may also have to reckon with bargain stores, which have grown dramatically since the recession at a rate much higher than the growth of discount chains like Target and Walmart, who have since begun to roll out their own bargain-style alternatives.
UPDATE: Family Dollar announced Thursday morning, Aug. 21, that it would not accept Dollar General's bid due to, "significant antitrust issues." The company said that it is committed to the initial proposed merger with Dollar Tree.
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