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CHESAPEAKE, Va. — Dollar Tree Inc. plans to rebrand its Deals banner in order to focus on its Dollar Tree and Family Dollar brands.
Dollar Tree Inc. plans to rebrand its Deals banner in order to focus on its Dollar Tree and Family Dollar brands.
Dollar Tree acquired 138 Deals store locations in 2006, and it has since expanded the chain to 222 stores in 19 states.
Unlike Dollar Tree, which sells everything at a single price point of $1, the Deals stores have taken a multi-price-point approach, offering low prices on a variety of everyday merchandise, including party, seasonal and home products.
The Deals format is thus somewhat similar to that of Family Dollar and, on July 6, Dollar Tree completed its acquisition of more than 8,200 Family Dollar stores across 46 states.
"For nearly a decade, our committed team of Deals associates has done a great job of consistently providing customers with terrific values," said chief executive officer Bob Sasser. "Now that we have successfully completed our acquisition of more than 8,200 Family Dollar stores, we are confident that we can better serve our Deals customers and markets through one of our primary banners — Dollar Tree, which offers tremendous values for needs and wants at the single price point of $1, or Family Dollar, your neighborhood discount variety store which provides name brand and quality private brand consumable products at everyday-low prices."
Of the 222 Deals stores, 217 will be converted into Dollar Tree outlets and five will be converted into Family Dollar stores.
The Deals store conversions are expected to be completed by the end of July 2016. Sasser said Dollar Tree also remains committed to its initiative to rebanner hundreds of Family Dollar stores to Dollar Tree stores. The company is on track to complete at least 150 conversions of Family Dollar to Dollar Tree stores by the end of this month, and it plans more of these conversions for 2016.
"This initiative to rebrand our Deals stores enhances our ability to focus on our two primary banners, Dollar Tree and Family Dollar, while improving efficiencies throughout our business," Sasser said. "We are very pleased with our progress on the Family Dollar integration, as we continue to focus on growing our business while creating long-term shareholder value."
In a research note, RBC Capital Markets managing director Scot Ciccarelli wrote that the move should allow the company to streamline back office and merchandising functions.
