Oak Hill, WV (CNN)- Dollar Tree is considering selling or spinning off Family Dollar.
The company acquired the chain in 2015 for $8.5 billion.
Dollar Tree was hoping the merger would help it compete with bigger rivals.
However, Dollar Tree is still wading through the mess it inherited with the Family Dollar.
Analysts say a combination of messy stores, high prices, and too much expansion has plagued Family Dollar.
Dollar Tree’s CEO says the two chains’ “unique needs” have led to a possible split.
While both are discount stores, Family Dollar caters to low-income customers in predominantly urban areas, while Dollar Tree has more of a middle-income clientele in the suburbs.
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