Dollar Tree Buys Way Into Canada
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?
- Dollar Tree Announces Definitive Agreement to Acquire Canadian Dollar Giant
Stores – Dollar Tree, Inc.
- Dollar Tree Acquires Dollar Giant to Jump-Start Expansion into Canada – Morningstar
Tree to buy Dollar Giant for about C$52 million – Reuters