Dollar Tree Closes Deal$ Buy

CHESAPEAKE, VA-Dollar Tree Stores has closed on its acquisition of Supervalu’s Deal$ chain for $52.7 million. For $30.5 million, Dollar Tree purchased the store assets and leasehold rights of the 138-store chain, and the remainder of the purchase price went toward inventory.

The Deal$ units are in 16 states, mostly in the Southeast and Midwest, and average 11,000 sf. The acquisition brings Dollar Tree’s total store count, between its namesake stores and Deal$, to 3,097 units.

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 last month.