A bid came in for Family Dollar, and Trian Group, led by investor Nelson Peltz, is only offering a paltry $7 billion for the publicly traded deep-discount chain. Talk about cheapskates!
This whopping sum goes to show how much value is placed on discount, even in a supposedly improving economy. To give you some scale, Nieman Marcus went private for $5.1 billion in the much more upbeat economy of 2005.
It is safe to say that we can do away with the stereotype of the dingy dollar store, at least when considering the scope of this retailer and the amount of money it brings in. Just look at Familly Dollar's recent first-quarter results. Sales increased 9.5%, to reach just under $2 billion. It brought in $74.3 in net income, a 9.9% year-over-year increase.
And Family Dollar is also helping out the retail real estate business. It currently operates a mind blowing 6,800 stores and plans to open 300 more over the remainder of the year.
Next time we're driving by one of these stores that sells items on the cheap, we'll be thinking about big bucks.
Meanwhile, look for Big Lots to get a similar reception, as it is considering a sale as well.
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