Divestiture happens when two companies that compete with each other merge, and the FTC determines that they don’t have enough competition to help keep prices down and service acceptable to customers. Those former Family Dollar stores have now been reborn as Dollar Express.
The new owners are Sycamore Partners, a private equity firm that has bought up some familiar mall brands, including Coldwater Creek, Hot Topic, Nine West, Talbots, and Torrid. Now they’re instantly the owners of 330 discount stores.
Dollar Express will operate on the “discount store” model that Dollar General and Family Dollar use, which is to operate somewhere between a big-box discount store and a traditional dollar store, without being held to a $1 price point. Dollar Tree is a traditional dollar store where all items cost $1 or 50¢.
(via Chain Store Age)