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Dollar Tree’s decade-long effort to fold the Family Dollar chain into its business is ending after agreeing to sell the bargain store chain to a pair of private equity firms for $1 billion ...

Dollar Tree reported net sales of $5 billion – excluding sales from Family Dollar stores – a 2% increase in same-store sales during the three-month period ending Feb. 1, 2025.

People walk by a Family Dollar store in Brooklyn on March 26, 2025 in New York City. The discount retail chain Dollar Tree is selling Family Dollar to a pair of private equity firms for $1 billion.

Last March, Dollar Tree announced plans to close roughly 1,000 underperforming stores, and in June said it was launching a review of whether it should sell or spin off the Family Dollar brand.

Dollar Tree is ending its short-lived and ill-fated Family Dollar experiment, offloading the discount brand for $1 billion – just a fraction of its purchase price from a decade ago.

The company expects an earnings hit of roughly $0.30 to $0.35 per share from the deal. But the Street largely seemed relieved that Dollar Tree was close to shedding Family Dollar.