Goodbye 99 Cents Solely. Whats up Greenback Tree.

Greenback Tree introduced Wednesday it acquired leases for 170 of 99 Cents Solely’s shops out of chapter in Arizona, California, Nevada and Texas. Greenback Tree will reopen these shops with its personal merchandise beneath its model starting within the fall.

99 Cents Solely had filed for chapter in April and closed all of its 370 places.

The 2 chains are very completely different, and the announcement is an indication of consolidation within the retail trade.

99 Cents Solely was a regional chain and offered groceries. Greenback Tree, a nationwide firm with largely suburban places, primarily gives discretionary merchandise like social gathering provides and residential items. Greenback Tree was the final greenback retailer chain to promote every part for $1 earlier than elevating costs in 2021 to $1.25 and above.

Greenback Tree additionally owns Household Greenback, based in cities. Household Greenback has underperformed Greenback Tree and different low cost chains in recent times, and it is closing 975 shops.

The acquisition of 99 Cents Solely leases out of chapter provides Greenback Tree a less expensive approach to develop quite than constructing new shops and helps the Virginia-based chain prolong its attain on the West Coast.

“Administration felt that these places are basically good and in comparatively quick provide, in order that they took benefit of competitor weak spot,” Michael Montani, an analyst at Evercore IRI, wrote in a observe to shoppers Wednesday.

One problem for Greenback Tree might be the dimensions of 99 Cents Solely shops.

99 Cents Solely shops are on common roughly 20,000 sq. ft, greater than double the dimensions of a typical greenback retailer chain.

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