Dollar Tree Selling Family Dollar for $1 Billion
A Dollar Tree location in North Windham, Connecticut Photo credit: Bill - stock.adobe.com
Deep-discount retailer Dollar Tree is offloading its poorly performing Family Dollar business to two private investors for just over $1 billion, the company announced Wednesday. That’s far below the $8.5 billion Dollar Tree paid for Family Dollar in 2015, according to Morningstar. “Dollar Tree and Family Dollar are two different businesses with limited synergies, and each is at a very different stage of its journey,” CEO Mike Creedon said on Wednesday during the retailer’s fourth-quarter earnings call. “Separating them will enable each banner to be led and managed by a dedicated team that can focus exclusively on that banner’s distinct needs and on realizing each banner’s full potential.”
Investment firms Brigade Capital Management and Macellum Capital Management will take ownership of Family Dollar once the sale closes in 90 days or so. “We look forward to continuing and enhancing Family Dollar as its own enterprise, which we are confident will drive greater success for the business and value for all of Family Dollar’s stakeholders, including employees, customers and communities,” Brigade partner Matt Perkal said in a statement.
During the 2024 fiscal year, which ended on Feb. 1, Family Dollar posted net sales of $13.25 billion, down from $13.81 billion the previous year. The sale to Brigade and Macellum follows a recent review of strategic alternatives for Family Dollar, as the company struggled to integrate the two businesses and faces stiff competition from other discount retailers, according to CNN. As of Feb. 1, Family Dollar operated 7,622 stores, down from 8,359 at the same time in 2024. By contrast, Dollar Tree operated 8,881 stores as of Feb. 1, up from 8,415 at the same time in 2024. Family Dollar had planned to close 600 locations in 2024 and another 370 stores over the next several years as leases expire, CNN reported.
Orlando Tops Marcus & Millichap’s 2025 Retail Real Estate Markets
The Orlando skyline Photo credit: Shutterstock/Lucky-photographer
Commercial real estate brokerage firm Marcus & Millichap identified Orlando, Florida — home to four Walt Disney World theme parks and a slew of other vacation destinations — as the top-performing major metro area for retail real estate this year. “With a swiftly growing resident base, the need for essential retailers like grocery stores is on the rise. [A] mix of population growth and strengthening tourism should support a sturdy long-term outlook for local retailers,” Marcus & Millichap reported of the city in its recent 2025 U.S. Retail National Investment Forecast. The company’s 2025 National Retail Index, a key feature of the report, assessed 50 major markets based on 12-month, forward-looking factors such as projected job growth, retail vacancies, retail sales, retail construction and retail investment trends. Marcus & Millichap said the index shows “relative supply-and-demand conditions at the market level.”
The top 10 metro areas on Marcus & Millichap’s 2025 Retail Index:
| 1. | Orlando |
| 2. | Raleigh, North Carolina |
| 3. | Tampa-St. Petersburg, Florida |
| 4. | Miami-Dade |
| 5. | Dallas-Fort Worth |
| 6. | Las Vegas |
| 7. | West Palm Beach, Florida |
| 8. | Charlotte, North Carolina |
| 9. | Houston |
| 10. | New York City |
FROM THE C+CT ARCHIVE: A Rare Mixed-Use Greenfield Development Will Serve Up Retail, Residential and More to the Orlando Area’s Growing Population
Apple Promotes Exec to New Role as Global Store Leader
The Apple store located at the Iconsiam, a luxury shopping mall in Bangkok Photo credit: Quality Stock Arts - stock.adobe.com
In a move geared toward streamlining its retail business, tech giant Apple has tapped one of its executives to fill the newly created role of global vice president of stores and retail operations, Bloomberg reported. Vanessa Trigub previously oversaw Apple stores in the Americas West region, in addition to running retail operations. She’ll now also oversee the heads of retail for Europe and the Middle East, Asia-Pacific and the Americas East region, according to Bloomberg. Apple operates 535 stores around the world. Trigub reports to Deirdre O’Brien, Apple’s senior vice president of retail and people, and Bloomberg’s reporting suggests that Trigub is being groomed as an heir to O’Brien, who has worked at the company for more than three decades. Apple has not yet released a formal announcement about the new role.
Philadelphia-Area Mall Site To Become Mixed-Use Anchor
Exton Square Mall’s main concourse Photo credit: Exton Square Mall Main Concourse by Maxm667 under Creative Commons Attribution 4.0
A nearly 1-million-square-foot, 75-acre mall in suburban Philadelphia is slated for a mixed-use makeover. In a deal brokered by JLL, Abrams Realty & Development bought Exton Square, a super-regional mall, from PREIT for $34.25 million. While Abrams said it will keep the 178,000-square-foot Boscov’s department store anchor, it plans to tear down the rest of the mall, including a Macy’s store that has already closed, the Philadelphia Business Journal reported. The 52-year-old Exton Square comprises 990,000 square feet of gross leasable area occupied by tenants such as AT&T, Chick-fil-A, Kay Jewelers, T-Mobile and Round 1 Bowling & Arcade. Whole Foods Market is a shadow anchor. The forthcoming mixed-use development will create “a thriving economic and social anchor for Exton,” PREIT said in a release.
According to the Philadelphia Business Journal, the revamped site will offer:
- nearly 147,000 square feet of commercial space, including stores and restaurants
- over 600 residential units
- more than 95,000 square feet of fitness and entertainment venues
- over 48,000 square feet of office space
- a more than 47,000-square-foot healthcare facility
- a nearly 6,500-square-foot day care center
6 U.S. Companies Join Deloitte’s List of Top 250 Global Retailers
Photo credit: insideportugal - stock.adobe.com
Six U.S.-based retailers have joined an elite club. All appear for the first time on consulting giant Deloitte’s list of the top 250 global retailers. Deloitte published the rankings in its new Global Powers of Retailing 2025 report, based on revenue for the 2023 fiscal year ending June 30, 2024.
At No. 155, office-supply giant Staples ranks highest among the U.S.-based newcomers, generating $7.6 billion in revenue in 2023. It’s followed by No. 201 Total Wine & More, a wine, beer and spirits retailer, and the Raley’s Cos. grocery chain at No. 202, both with an estimated $6 billion in revenue. Next is the Defense Commissary Agency at No. 238, a federal grocery supplier for the U.S. Department of Defense commissaries, with $4.9 billion in revenue. Weis Markets, a supermarket chain, comes in at No. 244 with $4.697 billion, while apparel and lifestyle brand Urban Outfitters rounds out the group at No. 245, reporting $4.679 billion in revenue.
Hudson’s Bay Bankruptcy Plan Saves Six Stores, but Most Face Closure
A Hudson’s Bay store in Richmond Hill, Ontario Photo credit: JHVEPhoto - stock.adobe.com
After filing for Canada’s version of bankruptcy protection, department store chain Hudson’s Bay is shuttering all but six of its locations. A March 21 announcement said a revised liquidation plan granted by the Ontario Superior Court of Justice temporarily excludes the six outposts from the closure list based on stronger-than-projected sales. This leaves 74 stores that, for now, are set to close, pending further challenges from the company. Liquidation sales started on Monday. Hudson’s Bay said it is pursuing options such as strategic investments and lease sales to help fortify its finances. The closure list does not include the Saks Fifth Avenue and Saks Off 5th stores that Hudson’s Bay operates under a licensing deal.
By John Egan
Contributor, Commerce + Communities Today