Dollar General got approval from the Federal Trade Commission to purchase more than 300 Dollar Express stores across 36 states.
According to a report, with the nod from the FTC the discount retailer can move ahead with an aim of closing the deal in late June. Dollar General has not said how much it is paying for the 323 Dollar Express stores and won’t disclose plans for the specific store locations until the deal is completed, noted the report. The report noted that last week the FTC said Sycamore Partners — the private equity firm that owns Dollar Express — asked the FTC to shorten the 30 day public comment period on the sale of Dollar Express to let the company fulfill most of its commitments, including to its roughly 3,000 workers. “Sycamore stated in its application that Dollar Express LLC ‘can no longer operate as a viable standalone business,’ due to changes in competitive conditions since the purchase,” the agency said, according to the report. Sycamore bought the Dollar Express stores, formerly owned by Family Dollar, in 2015.
Last summer, coming off of disappointing sales, Dollar General moved to get more aggressive on pricing. At the time CEO Todd Vasos said Dollar General understands and aims to target the low-income consumer who might not have a lot discretionary income to spend. “As for our core consumer, we operate with the reality that it is always challenging for her to stretch her budget given the pressures on her income and spending,” Vasos told Retail Dive. “We have seen an ongoing contraction in core consumer retail spending as reflected in the Nielsen Panel data.”