Family Dollar stores could transform into Dollar Tree stores WSOC TV

MATTHEWS, N.C. — Some Family Dollar stores could see major changes a month after shareholders approved a merger.

PAST ARTICLE: Family Dollar shareholders approve merger with Dollar Tree

Family Dollar agreed to merge with Dollar Tree after months of controversy of about the Matthews-based store's future.  

Now, Dollar Tree's CEO Bob Sasser said his priority has been to "take a look at Family Dollar stores that would perform better as Dollar Tree stores."

That shouldn't be a surprise, retail expert Jane Thomas said.  

"What they're seeing is there are some underperforming stores for Family Dollar and it appears that many of those underperforming stores are in more suburban markets," Thomas said.

Rebranding suburban stores could be beneficial because more affluent shoppers in those areas tend to favor Dollar Tree and its $1 deals, Thomas said.

Family Dollar stores in rural and urban areas normally perform better because there isn't as much competition from Walmart in those areas, she said.  

Family Dollar officials said they're not prepared to announce what stores might switch to the Dollar Tree brand.

The move doesn't appear to be a signal that the new combined company will try to phase out the Family Dollar name or business model, Thomas said.

"No one is going to go in and immediately change everything from one brand to another brand," Thomas said.

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