Family Dollar/Dollar Tree combo store to open in Okolona
Mar. 8—OKOLONA — Okolona will be getting its own Family Dollar/Dollar Tree store some time later this year.
Patsy Gregory, the city's economic liaison, said the retailer will be filling the former Fred's store. Fred's filed for Chapter 11 bankruptcy in 2019 and subsequently closed its stores.
The combination store is a new concept that Family Dollar and Dollar Tree rolled out last year. About 50 combination Family Dollar/Dollar Tree stores have opened nationwide, and Dollar Tree — which acquired Family Dollar in 2014 — said it would open more of the stores this year.
According to the website Chain Store Age, the combination stores were first piloted in 2019 and combine the Dollar Tree and Family Dollar brands under one roof. The stores are designed to serve small towns and rural communities with populations of 3,000 to 4,000 — markets where the company would traditionally not open a Dollar Tree store alone.
Last week Dollar Tree reported fourth-quarter sales that missed Wall Street estimates and said it was ramping up its store growth and remodeling with a push for a new format that combines both its banners.
Dollar Tree plans to open 600 stores and renovate 1,250 Family Dollar locations this year, with the openings consisting of 400 Dollar Tree stores and 200 Family Dollar stores. The new Family Dollar stores comprise combination stores and "H2" stores, which feature improved merchandise offerings, including a Dollar Tree $1 section, and more freezer and cooler doors, according to Chain Store Age.
Dollar Tree said that the combination stores are bringing in 20% more in same-store sales compared to standalone Family Dollar locations. The new stores also are providing higher profit.
"We are extremely pleased with our customers' response to the new combination store concept," said Michael Witynski, president and CEO, Family Dollar. "As I have said in the past, we will continue to refine our strategic store formats so that we are able to better serve customers, while improving store productivity, margins and returns. We want formats that leverage the best of the Dollar Tree and Family Dollar brands to serve customers in all types of geographic markets. We believe we can continue to change, evolve and improve."
Dollar Tree operated 15,685 stores across 48 states and five Canadian provinces as of Jan.30, 2021. Stores operate under the brands of Dollar Tree, Family Dollar and Dollar Tree Canada.
