Two popular low-cost retail chains with dozens of locations locally will become one company by early next year.
Dollar Tree Inc. says it will buy Family Dollar Stores Inc. in a deal said to be worth $8.5 billion.
While both Dollar Tree and Family Dollar will share the same main office, not much else is expected to change, Dollar Tree executives said in a release. Stores will continue to operate under their own banners and their own policies, creating a combined force to compete with Dollar General.
The new Dollar Tree will have 13,000 stores across 48 states and five Canadian provinces, with annual sales expected to hit $18 billion.
Family Dollar chief executive Howard Levine will stay with the company, but report directly to his Dollar Tree counterpart, Bob Sasser. Levine will join the company’s board of directors.
While both stores are discount-oriented, each has its own approach to pricing. Dollar Tree does not sell any item for more than $1, while Family Dollar has various prices, but typically at a discount compared to competitors.
Family Dollar operates six stores locally, including four in Zephyrhills, and a store each in Dade City and San Antonio. Dollar Tree has stores in Lutz, Land O’ Lakes, Wesley Chapel, New Tampa, Zephyrhills and Dade City.
