Family Dollar is undergoing a major portfolio shift in 2025 as its parent company, Dollar Tree, works to restructure underperforming assets and reposition the brand. The company is focusing on store renovations and rebranding select locations as combined Family Dollar/Dollar Tree formats to enhance product variety and customer appeal. However, the headline news this year is Dollar Tree’s decision to close nearly 1,000 Family Dollar stores over the next few years, citing persistent underperformance and excessive inventory loss—one of the most aggressive closures in the retail sector this year. These closures are occurring alongside the sale of Family Dollar to private equity firms Brigade Capital Management and Macellum Capital Management for $1 billion, marking the end of Dollar Tree’s decade-long ownership.
For NNN investors, this transition represents both caution and opportunity. The large-scale closures create potential exposure for investors holding older or low-performing Family Dollar assets, particularly in saturated or economically stagnant markets. That said, the shift to private equity ownership could lead to leaner, more profit-focused operations, which may benefit high-performing locations. Investors should carefully evaluate tenant financial strength and prioritize renovated or dual-branded stores in areas with strong demographics and minimal retail redundancy. As the brand resets, underwriting should emphasize lease guarantees, rent-to-sales metrics, and long-term viability in the local market. While risk has increased, well-located Family Dollar properties still offer upside potential for buyers willing to be selective.