Man with a worried expression in front of a Dollar Tree store — Dollar Tree breaks with what was known until now and, as part of a strategy, takes unexpected measures | Nicolas Menijes, Montaje propio, Dollar Tree

Camara — Dollar Tree breaks with what was known until now and, as part of a strategy, takes unexpected measures | Nicolas Menijes, Montaje propio, Dollar Tree

Dollar Tree announces they've just ended every relationship: change in the U.S.

Dollar Tree makes a key decision that could redefine its future in an increasingly competitive market

10/07/2025 17:13:00h

Angélica Oyarzún

The low-cost retail sector has experienced ups and downs in recent years. With consumers constantly looking for the best deals, Dollar Tree, one of the giants of discount stores, has had to navigate an extremely competitive market.

Despite the challenges, Dollar Tree has managed to stay afloat, adapting to new market dynamics. However, in recent years, warning signs have multiplied. Low-cost stores, historically an economical option, are now overwhelmed by online competition and other external factors.

Dollar Tree store facade with several cars parked in front.

Dollar Tree has stated that the success has not been as they desired | Google Maps

Dollar Tree closes a chapter with the sale of Family Dollar

In a surprising strategy, Dollar Tree has decided to sell Family Dollar for one billion dollars, marking a major shift in its approach. This sale ends the relationship that began in 2015, when Dollar Tree acquired Family Dollar for nine billion dollars. According to analysts, this decision closes "a sad and problematic chapter" for the chain, which did not achieve the desired results after the acquisition.

The sale of Family Dollar reflects a reassessment of Dollar Tree's strategy in response to growing competition and internal challenges. The difficulties in integrating both brands, global economic uncertainty, and the decline in customer traffic made the sale inevitable. As Neil Saunders, analyst at GlobalData Retail, explains, this move is "the closing of a chapter" that ultimately did not yield the desired results.

Storefront with Family Dollar and Dollar Tree signs, with the sun shining behind the building.

Dollar Tree and Family Dollar began a business partnership in 2015 | Family Dollar

The future of low-cost stores in a competitive market

Although Dollar Tree remains an important competitor in the retail sector, competition is stronger than ever. Giants like Walmart and Amazon have surpassed traditional chains, offering competitive prices and fast services with same-day delivery. Meanwhile, online stores like Temu and DHgate are attracting consumers with low prices and a convenient shopping experience.

In this landscape, discount stores must adapt quickly to stay competitive. Although some, like Five Below, continue to thrive, the key will be how each brand handles sourcing, pricing, and tariffs.

Facade of a Dollar Tree store with a green sign and parking in front.

The measures are drastic, but it's the way to keep competing | Dollar Tree

Meanwhile, Dollar Tree has begun to diversify its product offerings, focusing on a better national sourcing strategy. This could help the chain stay relevant in an increasingly competitive and changing sector.

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