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Dollar Tree Gets Supervalu Chain

CHESAPEAKE, VA-The $30.5-million acquisition Deal$ gives Dollar Tree 138 new units and the entrance into price points over $1 per item.

By Ian Ritter | Updated on February 22, 2006

CHESAPEAKE, VA-Dollar Tree Stores is buying Deal$, a 138-unit chain in the Southeast and Midwest, from grocery giant Supervalu for $30.5 million. The transaction will mark a departure for Dollar Tree from the $1-only price point the company currently employs in its close to 3,000 stores across the country.

Deal$ stores offer general merchandise at deep discounts, but the prices are not strictly $1, like Dollar Tree units. Dollar Tree will keep the Deal$ name on the stores and might look at integrating different price points into its flagship chain, said Bob Sasser, Dollar Tree’s president and chief executive officer, during a conference call with analysts.

“We’d like to explore some other ways of retailing,” he says, explaining that some Dollar Tree customers could be shopping elsewhere for large plastics items, like trash cans, that can’t be sold for $1. But Sasser stresses that changing the merchandise in Dollar Trees is “way out there in the horizon right now.”

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