US Foods and Dollar Tree Investigate Portfolio Divestments

US Foods and Dollar On Wednesday, Dollar Tree said that it would be reviewing “strategic alternatives” for the Family Dollar portfolio brand. Recently, US Foods made the decision to apply the same strategy to its Chef’ Store brand.

Dollar Tree mentioned that one of the options might be to sell the Family Dollar company, spin it off, or find another way to dispose of it.

US Foods and Dollar Tree Investigate Portfolio Divestments

US Foods and Dollar Dollar Tree’s chairman and CEO, Rick Derailing, said in a statement that the company has been on a multi-year path to help it reach its full potential. In order to concentrate on increasing investments in the Family Dollar stores that remain and offer better prospects for long-term growth and transformation with more alluring returns on capital, we announced last year that we were conducting a thorough review of the Family Dollar portfolio. As part of this review, we planned to close about 970 underperforming Family Dollar locations.

We are starting to notice improvements in this focused approach under the redesigned Family Dollar brand.

US Foods and Dollar According to Derailing, the company plans to increase its multi-price offers, build additional stores, and take advantage of acquisition opportunities. One such transaction was the recent acquisition of 170 leases for 99 Cents Only stores located in Arizona, California, Nevada, and Texas.

“We decided to conduct a thorough review of strategic alternatives for the Family Dollar business due to the unique needs of each banner at this time—growth acceleration at Dollar Tree and transformation at Family Dollar,” Derailing said.

The company announced plans to investigate strategic alternatives for its Chef ‘Store restaurant and kitchen supply store operations during US Foods’ 2024 Investor Day.

US Foods and Dollar Tree Investigate Portfolio Divestments

US Foods and Dollar The wholesale company mentioned during the presentation that Given its lack of portfolio synergy, Chef ‘Store “would benefit from focused investment under new ownership.” Notwithstanding the recent disclosure, the firm stated that it still plans to establish five additional Chef ‘Store sites in 2024, increasing the chain’s total number of outlets to 96 across 14 states.

US Foods and Dollar In the presentation, US Foods stated, “We remain fully committed to supporting Chef ‘Store, our associates, and our customers during the process.”

Article Source specialty food

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