Almost every American family has been affected by the dollar store. Who knew so much could be had for a buck? Now comes the announcement that rivals Dollar Tree and Family Dollar--two big players in the sector--are merging. (Technically, Dollar Tree is buying Family Dollar for $8.5 billion, but to consumers it'll just look like a merger.)
The dollar store business will remain a competitive one--gotta keep those prices down! Current top dog Dollar General Corp. has more than 11,000 stores. The Dollar Tree-Family Dollar deal will put the new combined company in the lead with more than 13,000 retail operations. AP reports that dollar stores have "struggled as major retailers including Wal-Mart Stores Inc. and Kroger have stepped up their courtship of lower-income customers." And the other reason is because, well, everything costs pretty much a dollar. Dollar Tree actually sticks with the dollar promise, whereas at Family Dollar items can cost a little more--but not enough to induce sticker shock.
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