Dollar Tree is the third largest dollar store chain in the U.S. behind Dollar General and Family Dollar, but it is about to become the first in the channel to operate outside the country after agreeing to buy the Dollar Giant chain in Canada.
Dollar Giant, which is based in Vancouver, British Columbia, is the third largest dollar store chain in the country. Having 85 stores in Canada, the chain trails behind Dollarama (600 stores) and Your Dollar Store With More (140 stores). The chain, which operates locations in Alberta, British Columbia, Ontario and Saskatchewan, sells a wide variety of consumables, general merchandise and seasonal goods priced $1.25 (CAD) or less. Stores average about 9,000 square feet.
"I am excited about the opportunity to expand our presence into Canada," said Bob Sasser, President and CEO of Dollar Tree, in a statement. "Dollar Giant is an excellent fit for us. This acquisition will enable us to further leverage our resources and infrastructure to offer more value to more customers. It provides Dollar Tree with an outstanding platform for significant, profitable growth in the Canadian market.
"I am particularly impressed with the people of Dollar Giant. The company's management and associates have extensive retail experience and the proven ability to build and expand an effective, profitable business," Mr. Sasser said. "This team will remain in place. They are one of the key reasons for my confidence about our future success in Canada."
Discussion Questions: Will Dollar Tree's acquisition of Dollar Giant make it more competitive going up against larger chains? What was your reaction to Dollar Tree's announcement it planned to leave Dollar Giant's executive team in place to continue operating the chain?