Dollar Tree Acquires 170 99 Cents Only Stores Out of Bankruptcy

Dollar Tree, a retail giant, announced its acquisition of 170 99 Cents Only stores after the latter filed for bankruptcy in states like Arizona, California, Nevada, and Texas.

This move signifies a significant consolidation in the retail industry as Dollar Tree plans to rebrand and stock these acquired stores with its product lines.

Unlike 99 Cents Only, known for its grocery offerings, Dollar Tree primarily sells party supplies and home goods, with a recent price increase to $1.25 and above.

The acquisition comes at a time when Dollar Tree’s other chain, Family Dollar, faces challenges and is set to close 975 stores.

Analysts like Michael Montani believe that Dollar Tree’s acquisition of 99 Cents Only locations was a strategic move to capitalize on competitor weaknesses and expand its presence on the West Coast.

However, Dollar Tree may face challenges with the larger physical size of the 99 Cents Only stores, which are on average double the size of typical dollar stores.

The United States Bankruptcy Court recently approved the transfer of 170 99 Cents Only store leases from bankruptcy proceedings to Dollar Tree, allowing the company to extend its reach in prime retail locations.

In response to the acquisition, Dollar Tree’s Chief Operating Officer, Michael Creedon, expressed optimism about the growth potential in priority markets and the opportunity to enhance the Dollar Tree brand in the western United States.