Dive Brief:
- As Family Dollar separates from parent company Dollar Tree, Duncan MacNaughton has been named chairman and chief executive officer of Family Dollar, according to a company press release. Jason Nordin will retain his position as president of the banner.
- MacNaughton will assume his new role after Dollar Tree completes the $1 billion sale of Family Dollar to private equity firms Brigade Capital Management and Macellum Capital Management. The deal is expected to close in the second quarter.
- MacNaughton was president and chief operating officer of Family Dollar from 2016 to 2020, per his LinkedIn profile. Since that time, he has served as a retail consultant through MacNaughton Industries.
Dive Insight:
Family Dollar is setting up its leadership team for life as a stand-alone operation and is tapping two company veterans to do it.
In addition to MacNaughton’s previous time as COO and decades of experience in the industry, Nordin served as chief of stores for Dollar Tree from September 2023 until November of last year, when he took over as president of Family Dollar. Nordin played a key role in reviewing strategic alternatives for Family Dollar and has been leading the stand-up of the new Family Dollar operation so far, per the release. The appointments were made by both Dollar Tree and Family Dollar’s new owners.
“This leadership structure brings together two highly experienced and complementary leaders who share a deep commitment to Family Dollar’s success,” Mike Creedon, CEO of Dollar Tree, said in a statement. “Duncan’s leadership experience and passion for value retail, combined with Jason’s strategic and operational expertise, position Family Dollar for a strong future as an independent company.”
Dollar Tree first acquired Family Dollar in 2014 for $8.5 billion. Family Dollar consistently struggled to grow its business, which caters primarily to lower wage-earning consumers, under Dollar Tree. As early as 2019, activist investors were calling for Dollar Tree to sell the retailer.
Persistent inflation and reduced government benefits since the pandemic contributed to a pattern of sluggish performance at Family Dollar. Dollar Tree said in early 2024 that it would close nearly 1,000 Family Dollar locations as it conducted a strategic review of the business.
By June of last year, Dollar Tree said it was considering a spinoff or sale of Family Dollar.
