No more Deals for Dollar Tree with new store conversion plan

Dollar Tree’s website lists seven Deals stores in South Hampton Roads – three in Norfolk, and one each in Chesapeake, Portsmouth, Suffolk and Virginia Beach. (DLTR) said Tuesday that it plans to re-brand its Deals banner by converting the Deals stores to the Dollar Tree format.

In 2006, Dollar Tree had acquired the 138 Deals stores.

Dollar Tree also said it remains committed to its initiative to re-banner hundreds of Family Dollar stores to Dollar Tree stores.

Of the 222 locations, 217 will be converted to Dollar Tree and the remaining five will be changed to Family Dollar. Over the past nine years, these stores have grown to 222 stores, located in 19 states.

The company is expected to complete the rebranding process by as early as July 2016. The Deals stores have served customers by offering low prices on everyday essentials, party, seasonal and home products in a multi-price point environment. The discount retailer, which completed a $9 billion acquisition of rival Family Dollar in July, gapped down from above $76 on September 1 after announcing that it would not provide guidance.

Scot Ciccarelli, managing director at RBC Capital Markets, wrote in a research note Monday that while Deals was “an interesting add-on concept” for Dollar Tree’s pricing model, the brand became “far less relevant” with the addition of Family Dollar. Beyond 2016, the company expects to see more conversions. The low prices will be available at every day standards. The Two primary banners for Dollar Tree will be Family Dollar as well as Dollar Tree.