As the acquisition of Family Dollar moves closer to resolution, would be acquirers Dollar Tree and Dollar General maintain widely differing views on the superiority of their respective offers and the opinion of federal regulators.
Family Dollar Stores on Tuesday announced that it has certified substantial compliance with both the Federal Trade Commission’s second request regarding the acquisition by Dollar Tree, as well as the second request regarding Dollar General's bid for the company.
Dollar Tree and Family Dollar have amended their merger agreement to include a commitment by Dollar Tree to divest as many stores as necessary or advisable to obtain antitrust clearance for the previously announced cash and stock transaction.
Dollar General made the case for the superiority of its Family Dollar takeover bid with the release of second quarter results that revealed consistency as well some deceleration in sales and profit growth.
Undeterred by bad weather and competitive pressures that took a toll on its first quarter performance, Dollar General is pressing ahead with plans for 700 new stores, recently opened its 12th distribution center and believes its full year profit forecast is attainable.
Dollarama has appointed Johanne Choinière as chief operating officer, effective May 12. Choinière will be responsible for overseeing retail store operations as well as logistics, distribution and supply chain management.
Adverse weather conditions as well as power outages in some of Dollarama’s core markets throughout December 2013 resulted in a significant reduction in store traffic and the temporary closure of approximately 80 stores, for periods ranging from a few hours to two consecutive days. The majority of the impacted days occurred during the two weekends leading up to Dec. 25.
Canadian dollar-store operator Dollarama reported an increase in sales and an improvement in net earnings for the third quarter ended Nov. 3. The quarter was characterized by continued growth in the store network and solid comparable store sales growth.
Increased customer traffic helped drive Dollar Tree’s third-quarter results. The retailer cited growth in consumer basics as well as seasonal and variety merchandise, and said its higher margin variety categories are growing at a faster pace.