Family Dollar merger almost done, Dollar Tree says
CHESAPEAKE, Va. — Dollar Tree on Thursday reported progress with the Federal Trade Commission and divestiture buyers in order to complete the company's pending acquisition of Family Dollar. The FTC's staff has substantially completed its review and Dollar Tree plans to divest approximately 330 Family Dollar stores representing approximately $45.5 million of operating income. The company intends to reach an agreement with a divestiture buyer in the coming days and secure FTC clearance thereafter.
Dollar Tree intends to close the proposed merger in early July 2015.
The dollar store operator, which sells everything in its stores for $1 or less, reported consolidated net sales of $2.2 billion, up 8.8%, for its first quarter ended May 2. Consolidated same-store sales increased 3.4% on a constant currency basis, compared to a 2% increase in the prior-year period.
"Comparable store sales grew as the result of increases in both traffic and average ticket," said Bob Sasser, CEO Dollar Tree. "Customers are shopping with us more often and they are buying more on each visit. Our performance continues to validate that Dollar Tree is part of the solution for millions of customers seeking great values for their hard-earned dollars. Despite challenges presented by delayed receipts of merchandise related to the West Coast port congestion and the impact of the holiday calendar shift, our team worked together to deliver solid sales and earnings, both of which were well within our guidance range. We entered the second quarter with fresh inventory, stocked shelves and greater values than ever for our customers."
Dollar Tree opened 93 stores, expanded or relocated 10 stores, and closed six stores during the quarter. Retail selling square footage increased to 47.2 million square feet, a 7.1% increase compared to the prior year.