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Tag: dollar tree

  • Dollar Tree Acquires Family Dollar For $8.5 Billion

    There were echoes of trouble for dollar store franchise Family Dollar back in April, and talks of an impending buyout.

    On Monday it was announced that rival franchise Dollar Tree would be buying Family Dollar.

    Dollar Tree is said to have acquired the floundering company for about eight and a half billion dollars, although it’s believed that the deal could actually be worth well over nine billion.

    There are a number of questions being asked as this event sends shock waves throughout the dollar store industry.

    Many observers are curious as to what will happen to the Family Dollar Brand. It’s not unusual for the rival to acquire a franchise, and then change the names of the old stores to their own.

    This would be somewhat difficult to pull off for Dollar Tree, which operates in a much different manner from Family Dollar.

    It’s known far and wide that everything in a Dollar Tree store is $1 or less. However, Family Dollar stores have items ranging in price.

    Dollar Tree has stated that it expects to operate Family Dollar as its own brand, separately from the Dollar Tree, Dollar Tree Canada, and Deals brands.

    This is a situation where the boards for both companies are very enthusiastic about the deal.

    Though the shareholders at Family Dollar still have to approve the deal for things to be finalized, the rise in stock prices for both Dollar Tree and Family Dollar should help bring them around.

    Dollar Tree shares jumped ten percent to reach a value of $59.72 and Family Dollar shares jumped by nearly $15 dollars to $75.55.

    Even with the positive early outlook, it’s likely Dollar Tree will have make adjustments.

    The dollar store industry faces stiff competition from companies like Walmart, which has gone after lower income shoppers and those still feeling the effects of the recession.

    Image via Wikimedia Commons

  • Salsa Recall: Dip May Contain Glass

    Salsa Recall: Dip May Contain Glass

    A recall has been issued on salsa that is sold in Dollar Tree stores across the country due to the possibility that it may contain shards of glass.

    Olam Tomato Processors, Inc. issued the recall out of California this week, and the FDA put out a warning about the salsa. According to their release, the production codes for the Mild Chunky Salsa (UPC 3927759137) are L12142 (Best By Date June 2015) and L04093 (Best By Date October 2015) and for the Medium Chunky Salsa (UPC 3927759139) is L01313 (Best By Date July 2015). The labels of the affected product say distributed by Greenbrier International, Inc.

    While no injuries have been reported, the company says at least three consumers claim to have found glass in the jars. You can find photos of the affected salsa’s labels here.

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