Dollar Tree to buy Family Dollar for $8.5 Billion

One of the largest dollar stores in the area is buying out another large chain of dollar stores.

Dollar Tree announced Monday it is buying Family Dollar for $8.5 billion.

When the purchase is complete, Dollar Tree will be the country’s largest so-called dollar store with 13,000 locations, passing Dollar General Corp., with 11,300 stores, according to an Associated Press story posted by ABC News.

There are dozens of Dollar Tree and Family Dollar stores in Rhode Island, and it is expected that some locations will close as the combined company consolidates.

In recent years, the AP said that dollar stores have expanded in recent years “to include more groceries and brand-name products, instead of just the party favors and other knickknacks people often associated with them.”

Both companies will continue to operate under the existing names and pricing structures - where every item in Dollar Tree is $1 where Family Dollar sells items for various prices.

Though dollar stores were a haven for stock market investors at the height of the Great Recession, recent economic improvement has put pressure on discount retailers as consumers begin to spend more and rely on ultra-low-cost retailers less.