Family Dollar

With over 8,100 stores in 46 states and the District of Columbia, Family Dollar is the nation’s second largest dollar store. The company’s target customers are individuals shopping for a family earning less than $40,000 a year. Consumables (food, health, beauty aids, and household items) account for about two-thirds of sales. Family Dollar also sells apparel, shoes, and linens. Family Dollar stores are low-format and are located in low and middle-income rural and urban areas. Most goods and groceries (national brands, Family Dollar private labels, and unbranded items) are sold at a variety of discounted prices, the majority of which are under $10.

For the fiscal year ending August, 2014, sales were $10.49 billion, net income was $284 million. In July, 2015, Family Dollar was acquired by, and became a wholly-owned subsidiary of, Dollar Tree, Inc. The acquisition price for Family Dollar was $9 billion in cash and Dollar Tree stock. Dollar Tree does not guarantee the lease, and both brands will continue to operate separately.

The Family Dollar merger is dramatically reshaping Dollar Tree’s business. Total gross profit almost doubled last quarter, to $1.4 billion and the combined Dollar Tree-Family Dollar entity is now the largest discounter in North America with over 14,000 stores in 48 states and Canada with annual sales over $19 billion.