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Dollar Tree and Family Dollar have tried living together, and they like it.
These discount retailers have been part of the same company since 2015, but now they’re starting to share buildings.
As rival Dollar General makes big moves with their PopShelf concept, plans for lots of half Dollar Tree, half Family Dollar stores are underway. Here’s what you need to know.
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New Family Dollar Stores will be co-branded with Dollar Tree.
Even though they’re owned by the same company, Family Dollar stores don’t have the same “everything’s $1” fixed price point as Dollar Tree stores.
With the Dollar Tree and Family Dollar combo stores, shoppers are able to access both the low-priced everyday items from Family Dollar as well as the rotating/seasonal $1 offerings of Dollar Tree.
Family Dollar will have 200 stores with Dollar Tree products by the end of 2021.
Family Dollar is planning to open 200 new stores in 2021, according to their Fourth Quarter 2020 report, and all of them will carry Dollar Tree’s $1 products in some form.
Some of those 200 stores will be the new combination format, and others will be Family Dollar “H2” stores, which feature a branded Dollar Tree $1 section.
Dollar Tree hasn’t shared how many of each type of store will open.
Lots more combo stores are coming to small towns.
Family Dollar opened the first combo store in 2019, with two more in early 2020. Now they’re up to about 50 of these stores, and they’ve targeted up to 3,000 communities where they could open co-branded locations.
The combo stores are targeted toward communities of 3,000 – 4,000 people — areas where Dollar Tree wouldn’t normally open stores.
They’re pretty excited about it, reporting 20% more same-store sales compared to standalone Family Dollar stores.
The combo stores don’t take Dollar Tree gift cards — yet.
Dollar Tree and Family Dollar customers have been waiting for the stores to accept each other’s gift cards — the way Gap/Old Navy/Athleta do — but they’ll have to wait a little longer.
I just spoke with a combo store employee in Texas, and the company is still working on accepting Dollar Tree gift cards in the co-branded locations, with no target date in sight.
When that finally happens, expect to see Dollar Tree gift cards work at Family Dollar stores nationwide, and vice-versa.