Dollar Tree sells Family Dollar for $1 billion

[TheFugitive]

Dollar Tree has divested itself of the Family Dollar chain, selling it to a venture capital firm for $1 billion.

https://www.msn.com/en-us/money/companies/dollar-tree-sells-family-dollar-to-a-capital-management-partnership-for-1-billion/ar-AA1BHqfV?ocid=BingNewsSerp

The current management of the Family Dollar division of Dollar Tree will stay on to run the new company.  It is unclear what will happen with the hybrid Dollar Tree/Family Dollar locations.

As it's rather evident that Dollar Tree has broken away from the single price point strategy the two chains look to increasingly become competitors in the future.  When you put that up against Dollar General it seems some sort of eventual shakeout is inevitable.

[Retail Regents]

It is unclear what will happen with the hybrid Dollar Tree/Family Dollar locations.

As the combo stores are typically Family Dollar locations first and foremost, I can expect them to cut the Dollar Tree section out of them, assuming they do not liquidate them outright.