Dollar Tree is exploring a sale or spinoff of Family Dollar

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. 

Sponsored Content