Discount chain Dollar Tree Inc will purchase rival Family Dollar Stores Inc for about $8.5 billion, in a surprise deal that will help it fend off increasing competition from big-box retailers such as Wal-Mart Stores Inc.Dollar stores have struggled in a weak U.S. economy as Wal-Mart and other large retail chain chase penny-pinching consumers by offering more items priced at $1 or less.The deal will give Dollar Tree more than 13,000 stores across the United States and Canada, vaulting the company ahead of Dollar General Corp to become North America's biggest discount retailer, with more than $18 billion in annual sales."It's not great news for Wal-Mart," said Canaccord Genuity analyst Laura Champine. "Dollar Tree is generally better run than Family Dollar was, so it could mean that Family Dollar has better products and more consistent merchandising."
Dollar General Corporation is a discount retailer in the United States by number of stores, with 9,961 stores located in 39 states as of March 2, 2012, primarily in the southern, southwestern, midwestern and eastern United States. Shares of DG fell by 0.13% or $-0.075/share to $55.54. In the past year, the shares have traded as low as $52.40 and as high as $65.99. On average, 5243130 shares of DG exchange hands on a given day and today's volume is recorded at 22345348.
Dollar Tree, Inc. (Dollar Tree) is an operator of discount variety stores offering merchandise at the fixed price. Shares of DLTR traded higher by 1.15% or $0.625/share to $54.84. In the past year, the shares have traded as low as $49.59 and as high as $60.19. On average, 1648380 shares of DLTR exchange hands on a given day and today's volume is recorded at 35200648.
Family Dollar Stores, Inc. (Family Dollar) operates a chain of more than 7,900 general merchandise retail discount stores in 46 states, providing consumers with a selection of merchandise in neighborhood stores. Shares of FDO traded higher by 24.79% or $15.04/share to $75.70. In the past year, the shares have traded as low as $55.64 and as high as $75.29. On average, 1634020 shares of FDO exchange hands on a given day and today's volume is recorded at 34821140.
Wal-Mart Stores, Inc. (Walmart), operates retail stores in various formats globally. Shares of WMT fell by 0.35% or $-0.265/share to $75.70. In the past year, the shares have traded as low as $71.51 and as high as $81.37. On average, 5660730 shares of WMT exchange hands on a given day and today's volume is recorded at 4952885.
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