Dollar Tree Acquires 170 99 Cents Only Stores

Dollar Tree is moving into 170 former 99 Cents Only stores, marking a big shift in the discount retail landscape. The company announced Wednesday it's taking over leases in Arizona, California, Nevada, and Texas, with plans to reopen the stores under its own brand as early as fall 2024.

This move comes hot on the heels of 99 Cents Only's bankruptcy filing in April, which led to the closure of all 370 of its locations. Dollar Tree saw an opportunity and pounced, getting prime real estate in key markets.

"As we continue to execute on our accelerated growth strategy for the Dollar Tree brand, this was an attractive opportunity to secure leases in priority markets where we see strong profitable growth potential," said Michael Creedon, Jr., Dollar Tree's Chief Operating Officer.

While both chains cater to bargain hunters, they're quite different. 99 Cents Only was a regional player known for groceries, while Dollar Tree is a national chain focusing on party supplies and home goods. The acquisition gives Dollar Tree a foothold on the West Coast without the need to build new stores from scratch.

One potential hiccup? Size matters. 99 Cents Only stores average about 20,000 square feet - double the size of a typical dollar store. Dollar Tree will need to get creative with all that extra space.