Today, Dollar Tree and Family Dollar merged, creating a strong company base of 13,000 stores and 145,000 employees in U.S. and Canada. This will allow the companies to achieve a competitive advantage - better prices from suppliers, larger inventory purchase, optimized and reduced logistics costs, and reduction of overhead costs. Combined, they form a bigger rival! The merger will allow for a combined $18 billion in sales, making Dollar Tree and Family Dollar a stronger competitor to larger discount stores such as Dollar General. Compared to Dollar General, who has a larger store count, saw a 2013 sales year of $17.5 billion. The Opportunity Family Dollar began the year with several stumbles and difficulties. In an attempt to gain more customers and increase sales, Family Dollar cut prices on 1,000 items, intended to close 370 stores, and slowed down new-store expansion. The Perfect Fit Dollar Tree’s CEO Bob Sasser believes that the two discount stores will fit together well, strongly targeting their appropriate market. Both discount stores opened in the 1950s, though with different approaches to how they run their business: Dollar Tree sells all their products for a dollar or less and targets the suburban market. Family Dollar on the other hand sells products at a range of discounted prices but focuses on the urban and rural poor. “It’s a big opportunity,” Sasser said. “At Family Dollar, they have good bones. They have good structure.” To re-strengthen the Family Dollar brand, Sasser will emphasize on the best-selling products and categories while scaling back on the weaker ones. Stock Lookout With the merger, stocks for both Dollar Tree and Family Dollar rose. Dollar Tree saw a stock gain of 3.2% to $55.96 while Family Dollar saw an increase of 24% to $75.15. Looking for quality dollar store wholesalers? Click here for more information.