Family Dollar is joining the ranks of retailers available on Uber Eats, as the discount chain prepares for a major transition in ownership and widespread store closures.
Uber announced this week that Family Dollar is being added to its Uber Eats platform, expanding the delivery app’s growing portfolio of retail partners that allow customers to order groceries and household items directly to their door.
The move comes on the heels of Dollar Tree’s decision to sell the Family Dollar brand to private equity firms Brigade Capital Management and Macellum Capital Management for $1 billion.
The sale marks a significant markdown from the $8.5 billion Dollar Tree spent to acquire Family Dollar in 2015 after a fierce bidding war with Dollar General.
Despite initial ambitions to expand its footprint in the discount retail sector, Dollar Tree struggled to integrate the chain due to supply chain disruptions, underperforming locations and broader operational challenges.
Dollar Tree said the divestiture will allow it to refocus on its core brand.
“Since 1959, Family Dollar has served its customers by offering convenient, high-quality products at a great value and the business is a pillar in communities across the United States,” Matt Perkal, partner at Brigade, said in a release.
“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.”
The deal is expected to close in the second quarter of 2025. But the new owners face an uphill climb. Analysts, including retail expert Neil Saunders, say Family Dollar suffers from inconsistent pricing and a less loyal customer base compared to competitors.
The acquisition also coincides with sweeping cost-cutting measures across the discount retail industry.
Dollar Tree has already begun closing hundreds of Family Dollar locations — approximately 600 stores shuttered in the first half of 2024, with another 370 Family Dollar stores and 30 Dollar Tree stores expected to close over the next few years.
The company has also announced price hikes.
In a 2024 earnings call, Dollar Tree revealed plans to raise prices on more than 300 items from $1.25 to $1.50 and increase the maximum price of items to $7 as part of its broader “multi-price expansion strategy.”
Executives also indicated that a $10 price point could be introduced in the future.
As of February 1, 2025, Dollar Tree operated 16,500 Dollar Tree and Family Dollar stores across 48 U.S. states and five Canadian provinces.
Meanwhile, competitor Dollar General has announced its own store optimization efforts, with plans for closures following a strategic review.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
