"Discounter offers $8.95b for rival; Top player opens bidding war as industry changes" by Michelle Chapmanand Anne D’Innocenzio | Associated Press August 19, 2014
NEW YORK — Dollar General, the nation’s largest dollar-store chain, started a bidding war on Monday when it offered approximately $8.95 billion for rival Family Dollar. It was an attempt to trump Dollar Tree, which agreed to acquire Family Dollar for $8.5 billion last month.
The bidding war comes as the chains look for ways to grow sales and market share at a time when their core low-income customers remain financially stretched during the economic recovery. The companies have hit a particularly rough patch after years of expanding rapidly during the recession, when people shopped more at dollar stores to save money. Now, the companies are hoping they’ll be more profitable and efficient if they consolidate....
Ken Perkins, president of RetailMetrics LLC, a retail research firm, said, ‘‘It feels like a race to the bottom with some of the pricing,’’ he said.
For Dollar General, the decision to enter the fray was clear because Family Dollar had been on its radar for a while.....
Family Dollar has also come into play because of its business struggles. The Charlotte, N.C., company has been shuttering stores and cutting prices in hopes of boosting its financial performance.
In the midst of six years of economic recovery?
In June, investor Carl Icahn urged the company to put itself up for sale....
Apparently it is all a threat to Walmart.
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UPDATE: Family Dollar rejects Dollar General offer
