Dive Brief:
- Dollar Tree says it could need to divest around 250 stores to round out its Family Dollar acquisition, a smaller number than forecast, says Supermarket News.
- The pending merger was approved in January.
- The company is projecting the FTC will finish its potential divestiture review soon, wanting the merger to be done in April.
Dive Insight:
"While we still need to hear more from the Dollar Tree management team on its Family Dollar turnaround strategy, we expect the company will soon outline a detailed game plan on how it will look to integrate the two chains and, more importantly, improve the sales productivity and profitability of Family Dollar," says a Sterne Agee, New York, analyst, Chuck Grom.
Dollar Tree recently reported earnings, where it revealed the anticipated merger date of April 27, one that has been heavily in focus in the food retail space.