Family Dollar is entering a new chapter as it partners with Uber Eats, allowing customers to order groceries and household goods through the food delivery app. This update follows the recent sale of the discount chain by Dollar Tree for $1 billion, nearly a decade after purchasing it for almost $9 billion. The news comes amid the closure of hundreds of Family Dollar stores across the United States.
Family Dollar to Launch on Uber Eats
Uber confirmed in a press release that Family Dollar will soon be available on its delivery app. Customers will be able to shop for everyday items and have them delivered directly to their door. This move is part of Uber’s plan to expand beyond food and into retail delivery, making essential goods more accessible.
The addition of Family Dollar adds to the growing number of retail stores available on the platform. It is also a way for the brand to stay connected with customers even as many physical locations shut down.
The 2015 Acquisition and What Went Wrong
Dollar Tree acquired Family Dollar in 2015 for $9 billion after a bidding war with Dollar General. The deal was expected to create a powerful force in the discount retail industry. However, after the acquisition, Dollar Tree faced many challenges.
Supply chain disruptions, underperforming store locations, and stiff competition made it difficult to keep operations smooth. Analysts said these issues limited Family Dollar’s growth and weakened its market position.
New Ownership Aims for a Fresh Start
Dollar Tree recently sold Family Dollar to Brigade Capital Management and Macellum Capital Management for $1 billion. The deal is expected to close by the end of the second quarter of 2025.
The new owners say they will improve store operations and customer service. Their goal is to make Family Dollar a strong standalone business again. However, retail experts say they will face challenges, including pricing issues and low customer loyalty.
Store Closures Across the Country
As part of its restructuring plan, Dollar Tree announced the closure of hundreds of stores. In the first half of 2024, about 600 Family Dollar locations will shut down. Over the next few years, an additional 370 Family Dollar stores and 30 Dollar Tree stores will also close.
Some of the affected stores are located in Illinois, according to the Peoria Journal Star. The closures are part of a strategy to remove underperforming locations and improve overall profitability.
Price Hikes at Dollar Tree Stores
In addition to store closures, Dollar Tree also raised prices in its stores. More than 300 items now cost $1.50 instead of the previous $1.25. The company also raised the top price point to $7 for certain items. In future years, this cap could increase to $10.
This pricing strategy is known as a multi-price expansion. It reflects a shift from the company’s traditional $1 pricing model and aims to boost revenue while offering more product variety.
Dollar General Also Reducing Store Count
Dollar Tree is not the only discount retailer adjusting its strategy. Dollar General, its main competitor, also announced plans to close stores. The decision followed a company review of its store portfolio. While specific closure numbers have not been shared, the review suggests a significant downsizing is ahead.
What Uber Eats Brings to the Table
Adding Family Dollar to Uber Eats could help the brand reach more customers. As consumer habits shift to online shopping and fast delivery, having a digital presence becomes essential. This partnership allows Family Dollar to remain accessible even in areas where physical stores have closed.
Uber has already teamed up with hundreds of grocery and retail partners nationwide. The company said it aims to give people easy access to daily essentials through its platform.
