Family Dollar will close three area stores as scheduled despite Monday's announcement that Dollar Tree plans to purchase the company.
Local Family Dollar stores closing by the end of August are: 514 W. Centerton Road, Centerton; 1328 N. College Ave., Fayetteville; and 113 E. Pridemore Drive, Lincoln. Bryn R. Winburn, Family Dollar spokesman, said the company is closing seven of Arkansas' 115 stores deemed underperforming.
Family Dollar announced in the third quarter earnings report earlier this month that it plans to close 370 stores nationwide.
Bob Sasser, Dollar Tree's chief executive officer, said during a conference call Monday his company has been in talks with Family Dollar executives about a purchase for several months. Dollar Tree plans to buy Family Dollar for $8.5 billion. He said the deal will close early next year pending approval by Family Dollar shareholders.
The merged company will operate stores under both banners and formats. All items at Dollar Tree stores cost $1 or less. Family Dollar uses a multi-price format. Dollar Tree also owns discount retailer Deals. It also uses the multi-price format.
Some store formats could change to "put the right banner in the right place, even considering the existing fleet," Sasser said.
Family Dollar operates 10 stores, including the three slated for closing, in Northwest Arkansas. Dollar Tree has three stores in the two-county area and a pair of Deals locations.
Family Dollar has 8,246 stores nationwide and caters to moderate income customers. Dollar Tree operates 4,673 U.S. stores, 189 Dollar Tree Canada locations and 218 Deals. Most stores are in suburban areas and cater to a broad customer base. Sasser said the stores complement each other.
The purchase will allow the company to "serve more customers in more ways," he said.
NW News on 07/29/2014