A widespread discount chain that has already suffered several store closings in the past year is now exploring a potential sale of brand.

Woes Continue For Discount Stores

It hasn't been a good year for discount stores along with several other chains that have been hit hard by rising operating costs.

Among the first discount stores that started to fall was Family Dollar. The brand, which is owned by Dollar Tree, was set to close nearly 1,000 stores in 2024. CNBC says more than 500 Family Dollar locations were shuttered in the first quarter of the year.

The Family Dollar brand was snatched up by Dollar Tree in 2015 in a move CNBC says was meant to help level the playing field with rival discount retailer Dollar General.

Most recently, Dollar Tree acquired another discount chain, 99 Cents Only, which the company says added 170 stores to its portfolio.

Dollar Tree To Close 1,000 Family Dollar Stores
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Potential Sale For Discount Store Brand

Things have gotten a little more dire for Family Dollar. The parent company announced today that it's reviewing "strategic alternatives" for the Family Dollar brand. Among those options are a potential sale or spin off of the brand.

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"Our goal is to position both the Dollar Tree and Family Dollar banners to progress further and faster, and to determine whether the exclusive attention of a dedicated team will benefit both, while creating value for Dollar Tree shareholders and other stakeholders," Dollar Tree CEO Rick Dreiling said in a statement released to the media.

No deadline has been set for when Family Dollar could be up for sale. The company also cautioned in a press release that "there can be no assurance that this process will result in any transaction or particular outcome."

For now, the Dollar Tree company runs more than 16,000 stores across the U.S. and Canada under its different brand names.

Here is a look at other chains that also have struggled in 2024.

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