Dollar Tree sold family dollars with a large discount for only $ 1 billion. It was worth $ 9 billion just ten years ago

Dollar Tree really has a discount for everyone. A group of private capital investorsto buyThe dollar chain swinging for $ 1 billion is a sharp loss for the dollar tree that bought it for about $ 9 billion ten years ago.

Tugay Capital Management and Macellum Capital Management will take over about 7,000 family dollars. This will half the number of stores in which Dollar Tree operates under the umbrella.

Why couldn’t you run family dollars?

When Dollar Tree bought the dollar in 2015, the budget retailers’ king’s status is more than the rival dollar general, hoping to consolidate the status. However, Dollar Tree quickly found that he had caught badly well -groomed stores and had a different customer base proven to be difficult to serve.

• The Family Dollar serves low -income shoppers and varies, but still sell a number of household goods at cheap price points. Dollar Tree’s customer base tends to have higher revenues and tends to use the store for craft and party supplies that mainly cost $ 1.
• However, when the family and dollar stores were close to each other, the dollar and the dollar stores were similar enough to be cannibaling each other’s pedestrian traffic. The business was also faced with a harsh competition of retailers such as Amazon and Walmart.

Small, heavy discounted cake on the cream, the Family Dollar Slapsion of Justice Department, not only with live mice, but also dead and rotting ones full of storage of goods stored in a Western Memphis warehouse fined 41.6 million dollars.

After lowering the luggage of family dollars…Dollar tree in question Yesterday, he gained market share among his high -income customers and aims to balance President Trump’s tariffs by increasing prices in some places. Chain in 2021 increased Prices to $ 1.25, saying that stores will allow them to offer a wider range of products.– mm

This report was written by Matty Merritt And Publish initially with Morning bundle.

This story initially took part in Fortune.com