...June 14, 2024 While we continue to closely monitor our ratings on Dollar Tree Inc., we expect the outcome of its strategic review for Family Dollar will be credit neutral. In June 2024, Dollar Tree announced it has initiated a formal review of strategic alternatives of the Family Dollar business segment, which could include a potential sale, a spinoff, or other dispositions of the business. Earlier in March 2024, the company announced plans to close about 1,000 (mostly Family Dollar) stores and focus future store growth on the Dollar Tree banner. This follows years of underperformance--the company has not sustainably generated material operating income from the Family Dollar banner since acquiring it in 2015. Although the company will have less scale and diversification assuming a spinoff or divestiture, Dollar Tree will be considerably more profitable on a stand-alone basis because Family Dollar makes up almost half of the consolidated company's revenues but only 5% of the company's operating...
