Discount retailer Dollar General will acquire 323 Dollar Express stores from private equity owner Sycamore Partners, Dollar General and Dollar Express confirmed to Retail Dive on Tuesday.
The transaction is subject to customary closing conditions and approval by the Federal Trade Commission, according to the companies’ emails to Retail Dive. Financial terms were not disclosed. As many as 100 corporate positions and 2,700 store jobs are at risk, and several of the Dollar Express stores will be liquidated, the Charlotte Observer reports. In addition, the Dollar Express website has already disappeared.
Dollar Express emerged in 2015 when Dollar Tree divested some 330 stores in 35 states in order to assuage Federal Trade Commission antitrust concerns related to Dollar Tree’s $8.5 acquisition of rival Family Dollar.
Between healthy competition that has cut into margins, depressed food prices and cuts in many states’ food assistance programs, dollar stores have faced a series of challenges in recent quarters. Nevertheless, the category is among the healthiest in retail, attracting budget-minded middle income consumers as well as lower-income shoppers willing to trade brand names for bargains.
With e-commerce booming…