Dollar Tree Buying Family TreeDollar for 8.5 Billion Dollars

Keep Houston Press Free
I Support
  • Local
  • Community
  • Journalism
  • logo

Support the independent voice of Houston and help keep the future of Houston Press free.

For years, I've wondered how dollar stores could survive this deep discount tactic never realizing how many there were. On Monday, it became clear just how profitable these stores can be when Dollar Tree agreed to buy Family Dollar for the cost of 8.5 million items in its stores...not including tax.

Apparently the move was more about swallowing the competition than expanding business. Though there is no word on layoffs or store closures, it is expected Dollar Tree was making the purchase to cut into losses suffered at the hands of its rival which also includes Walmart and Dollar General -- yes, there is yet ANOTHER dollar store chain.

A check of the store locator function on the company websites found there are more than 60 Dollar Trees, more than 120 Family Dollars and nearly 30 Dollar General stores in the greater Houston area.

And the stores, though they tend to be located in poorer parts of every city, can be found in such diverse neighborhoods here as River Oaks, Tanglewilde, Oak Forest and Garden Oaks. Everybody likes a good deal. Plus, all of these chains have websites where you can buy direct. I guess everybody really is online now.

Despite the names, none of these stores sell everything for $1 or less, instead honing in on discounted household goods, toys and the like. But not only does Walmart sell a ton of discounted stuff, many of these items can be found at drug and grocery stores as well, no doubt seriously cutting into profit margins for all of them.

Family Dollar has seen the worst of it recently closing numerous stores and laying off more than 1,000 employees. We'll see if Dollar Tree can maintain such a significant presence in the market now that one rival is out of the way.

Keep the Houston Press Free... Since we started the Houston Press, it has been defined as the free, independent voice of Houston, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Houston with no paywalls.

We use cookies to collect and analyze information on site performance and usage, and to enhance and customize content and advertisements. By clicking 'X' or continuing to use the site, you agree to allow cookies to be placed. To find out more, visit our cookies policy and our privacy policy.


Join the Press community and help support independent local journalism in Houston.


Join the Press community and help support independent local journalism in Houston.