2025 Retailers To Watch: Dollar Tree/Family Dollar
It’s been another banner year for private label as retailers ranging from the biggest mass merchants to grocery stores, convenience store chains, drug stores, and department stores expanded their respective own brand assortments.
The conversation in 2024 evolved from one that was focused on price to retailers now regularly talking about the value proposition of their store brand products and using their proprietary assortments to differentiate from the competition.
With 2025 expected to see more private brand development, Store Brands has highlighted 10 Retailers To Watch in the coming year. The following retailers in 2024 expanded their own brand product assortments, with more expected from each in the next 12 months.
Dollar Tree/Family Dollar
Overview
For Dollar Tree and Family Dollar, 2024 has been an interesting year, and as 2025 approaches there are questions remaining to be answered. In June, Dollar Tree announced it was reviewing strategic alternatives for Family Dollar, including a potential sale, a spin-off, or another disposition. As of press time, no decision on the future of the chain has been announced.
While Dollar Tree conducts its strategic review of Family Dollar, the company continued its “transformation,” with officials at the retailer reporting meaningful sales lift at the 1,600 Dollar Tree stores that converted to its in-line multiprice format.
What To Watch
Topping the list of things to watch at Dollar Tree is a decision on the future of Family Dollar. The ongoing review of its operations has not stopped Family Dollar from bringing new products to market. Most notable is the retailer’s partnership with First Insight to refine its assortment strategy to meet evolving consumer expectations. This will allow it to bring “groundbreaking concepts” to the market while also reducing the risk of markdowns.
Both retailers in previous years have expanded their respective assortments of private label products to meet the needs of shoppers seeking quality products at a good price. At Family Dollar, private label penetration rates at the start of 2024 sat at 14%, with store officials saying the retailer was on target to hit its penetration rate goal of 20% by 2026.
Dollar Tree CFO Jeff Davis previously said that as the consumer seeks greater value, they will have more options with the retailer’s private brand assortment.
“It’s an opportunity for us to improve our margins,” he said. “And, to the extent that there is sort of price deflation, there’s an opportunity to provide even more value as we think about how we sort that particular product line.”
The growth of own brand assortments at Dollar Tree and Family Dollar in the coming year will be worth watching, especially if prices continue to moderate.
In addition to private label growth, the company is rolling out new store formats to optimize shopping experiences. The Dollar Tree Plus! initiative, which offers items priced at $3, $4, and $5, is gaining traction, attracting a wider range of shoppers. Meanwhile, Family Dollar is focusing on store renovations and combining its formats with Dollar Tree under one roof in select locations to offer greater variety and convenience.
