Dollar store sales have outperformed many other retail segments in recent years and the major players in the space continue to expand at a brisk pace. Moreover, some dollar store chains are expanding grocery offerings and experimenting with grocery-only concepts, which will make them even greater competitors with traditional supermarkets.
Last week, Matthews, N.C.-based Family Dollar, which operates more than 6,800 locations, confirmed that it received an acquisition proposal from the Trian Group, a New York City-based hedge fund.
The bid values Family Dollar’s shares at between $55 and $60 apiece for a combined total of approximately $7.6 billion. Before news of the offer emerged, the company’s shares were trading in the mid-$40s range. The stock opened trading Wednesday morning at just more than $51 per share.