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Dollar Tree sold Family Dollar at a massive discount for just $1 billion. Just a decade ago, it was worth $9 billion

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Dollar Tree really has a discount for everyone. A group of private equity investors agreed to buy the flailing Family Dollar chain for $1 billion, a sharp loss for the Dollar Tree, which acquired it ten years ago for roughly $9 billion.

Brigade Capital Management and Macellum Capital Management will take over the nearly 7,000 Family Dollar stores. That’ll halve the number of stores Dollar Tree operates under its umbrella.

Why couldn’t Dollar Tree make Family Dollar work?

When Dollar Tree bought Family Dollar in 2015, it outbid rival Dollar General in hopes of cementing its status as the king of budget retailers. But Dollar Tree quickly learned that it had snapped up poorly maintained stores and found that Family Dollar had a different customer base that proved to be challenging to serve.

  • Family Dollar serves lower-income shoppers and sells a range of household items at varied, but still cheap, price points. Dollar Tree’s customer base tends to have higher incomes and tends to use the store for craft and party supplies that predominantly cost around $1.
  • But when Family Dollar and Dollar Tree stores were near each other, they were just similar enough to cannibalize each other’s foot traffic. The business also faced stiff competition from retailers like Amazon and Walmart.

The icing on the small, heavily discounted cake was the Justice Department slapping Family Dollar with a record $41.6 million fine for selling items that were stored in a West Memphis warehouse that was littered with not just live rats, but dead and decaying ones as well.

After it drops the Family Dollar baggage…Dollar Tree said yesterday it’s gaining market share among its higher income customers and may aim to offset President Trump’s tariffs by raising prices at some locations. In 2021, the chain increased prices to $1.25 saying it would allow stores to offer a wider range of products.—MM

This report was written by Matty Merritt and was originally published by Morning Brew.

This story was originally featured on Fortune.com



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‘The world as we knew it has gone’ warns U.K. PM as tariffs threaten to upend global trade

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The “world as we knew it” is over, UK Prime Minister Keir Starmer said Sunday, as the world braced for further fallout from the introduction of US tariffs.

US President Donald Trump’s announcement of sweeping tariffs on Wednesday shows that “old assumptions can no longer be taken for granted,” Starmer said in a op-ed for the Sunday Telegraph newspaper.

“The world as we knew it has gone,” he wrote, floating the possibility of the state stepping in to protect British businesses from the tariffs’ fallout.

The new world will be governed less by established rules and “more by deals and alliances”, added the prime minister.

The tariffs have already sent markets into a tailspin, and all eyes will be on Monday’s opening with Trump warning Americans of pain ahead.

“This is an economic revolution, and we will win,” the Republican president wrote on his Truth Social platform on Saturday. “Hang tough, it won’t be easy, but the end result will be historic.”

Trump’s 34 percent tariff on Chinese goods is set to kick in next week, triggering Beijing’s announcement of a 34 percent levy on US products from April 10.

The European Union and Japan are also among around 60 trading partners set to face even higher rates on April 9, raising fears of recessions in some of the world’s leading economies.

Wednesday’s announcement has sent countries scrambling for a response, and Zimbabwe President Emmerson Mnangagwa said Saturday that he would suspend all tariffs on goods imported from the United States after being hit with an 18 percent levy.

State intervention

The UK has so far got off relatively lightly with a 10 percent tariff, and Starmer wrote on Sunday that the country’s response “demands the best of British virtues — cool heads, pragmatism and a clear understanding of our national interest”.

He later spoke with international leaders including European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz.

Starmer told them that “it would be important for the UK to strengthen its trading relationships with others across the globe”, according to a readout of the call released by his Downing Street office.

In his op-ed, the UK leader reiterated his government’s belief that “nobody wins from a trade war” and that the immediate strategy was “to keep calm and fight for the best deal.”

However, he insisted a US trade deal will only be struck “if it is right for British business” and that “all options remain on the table” in responding to the tariffs.

The new levies mark “the most sweeping tariff hike since the Smoot-Hawley Tariff Act, the 1930 law best remembered for triggering a global trade war and deepening the Great Depression”, said the Center for Strategic and International Studies.

In an immediate sign of the fallout, UK luxury car manufacturer Jaguar Land Rover said on Saturday that it will “pause” shipments to the United States in April as it addressed “the new trading terms”.

Recognising the shifting global economic sands, Starmer said that he was now prepared to use direct state intervention to protect certain sectors.

“This week we will turbocharge plans that will improve our domestic competitiveness,” he wrote, ahead of an expected major announcement on industrial strategy.

“We stand ready to use industrial policy to help shelter British business from the storm.

“Some people may feel uncomfortable about this… but we simply cannot cling on to old sentiments when the world is turning this fast,” he added.

This story was originally featured on Fortune.com



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Venezuelan immigrant couple in Miami’s ‘Doralzuela’ warns U.S. citizen daughter they may have to leave if Trump ends Temporary Protected Status

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Wilmer Escaray left Venezuela in 2007 and enrolled at Miami Dade College, opening his first restaurant six years later.

Today he has a dozen businesses that hire Venezuelan migrants like he once was, workers who are now terrified by what could be the end of their legal shield from deportation.

Since the start of February the Trump administration has ended two federal programs that together allowed more 700,000 Venezuelans to live and work legally in the U.S. along with hundreds of thousands of Cubans, Haitians and Nicaraguans.

In the largest Venezuelan community in the United States, people dread what could face them if lawsuits that aim to stop the government fail. It’s all anyone discusses in “Little Venezuela” or “Doralzuela,” a city of 80,000 people surrounded by Miami sprawl, freeways and the Florida Everglades.

Deportation fears in Doralzuela

People who lose their protections would have to remain illegally at the risk of being deported or return home, an unlikely route given the political and economic turmoil in Venezuela.

“It’s really quite unfortunate to lose that human capital because there are people who do work here that other people won’t do,” Escaray, 37, said at one of his “Sabor Venezolano” restaurants.

Spanish is more common than English in shopping centers along Doral’s wide avenues, and Venezuelans feel like they’re back home but with more security and comfort.

A sweet scent wafts from round, flat cornmeal arepas sold at many establishments. Stores at gas stations sell flour and white cheese used to make arepas and T-shirts and hats with the yellow, blue and red stripes of the Venezuelan flag.

New lives at risk

John came from Venezuela nine years ago and bought a growing construction company with a partner. He and his wife are on Temporary Protected Status, or TPS, which Congress created in 1990 for people in the United States whose homelands are considered unsafe to return due to natural disaster or civil strife. Beneficiaries can live and work while it lasts but TPS carries no path to citizenship.

Born in the U.S., their 5-year-old daughter is a citizen. John, 37, asked to be identified by first name only for fear of being deported.

His wife helps with administration at their construction business while working as a real-estate broker. The couple told their daughter that they may have to leave the United States. Venezuela is not an option.

“It hurts us that the government is turning its back on us,” John said. “We aren’t people who came to commit crimes; we came to work, to build.”

A federal judge ordered on March 31 that temporary protected statuswould stand until a legal challenge’s next stage in court and at least 350,000 Venezuelans were temporarily spared becoming illegal. Escaray, the owner of the restaurants, said nearly all of his 150 employees are Venezuelan and more than 100 are on TPS.

The federal immigration program that allowed more than 500,000 Cubans, Venezuelans, Haitians and Nicaraguans to work and live legally in the U.S. — humanitarian parole — expires April 24 absent court intervention.

Politics of migration

Venezuelans were one of the main beneficiaries when former President Joe Biden sharply expanded TPS and other temporary protections. Trump tried to end them in his first term and now his second.

The end of the temporary protections has generated little political reaction among Republicans except for three Cuban-American representatives from Florida who called for avoiding the deportations of affected Venezuelans. Mario Díaz Ballart, Carlos Gimenez and Maria Elvira Salazar have urged the government to spare Venezuelans without criminal records from deportation and review TPS beneficiaries on a case-by-case basis.

The mayor of Doral, home to a Trump golf club since 2012, wrote a letter to the president asking him to find a legal pathway for Venezuelans who haven’t committed crimes.

“These families do not want handouts,” said Christi Fraga, a daughter of Cuban exiles. “They want an opportunity to continue working, building, and investing in the United States.”

A country’s elite, followed by the working class

About 8 million people have fled Venezuela since 2014, settling first in neighboring countries in Latin America and the Caribbean. After the COVID-19 pandemic, they increasingly set their sights on the United States, walking through the notorious jungle in Colombia and Panama or flying to the United States on humanitarian parole with a financial sponsor.

In Doral, upper-middle-class professionals and entrepreneurs came to invest in property and businesses when socialist Hugo Chávez won the presidency in the late 1990s. They were followed by political opponents and entrepreneurs who set up small businesses. In recent years, more lower-income Venezuelans have come for work in service industries.

They are doctors, lawyers, beauticians, construction workers and house cleaners. Some are naturalized U.S. citizens or live in the country illegally with U.S.-born children. Others overstay tourist visas, seek asylum or have some form of temporary status.

Thousands went to Doral as Miami International Airport facilitated decades of growth.

Frank Carreño, president of the Venezuelan American Chamber of Commerce and a Doral resident for 18 years, said there is an air of uncertainty.

“What is going to happen? People don’t want to return or can’t return to Venezuela,” he said.

This story was originally featured on Fortune.com



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Kentucky 9-year-old boy caught by a flood on the way to his school bus is one of 18 dead in South after days of unrelenting rain

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Days of unrelenting heavy rain and storms that killed at least 18 people worsened flooding as some rivers rose to near-record levels and inundated towns across an already saturated U.S. South and parts of the Midwest.

Cities ordered evacuations and rescue crews in inflatable boats checked on residents in Kentucky and Tennessee, while utilities shut off power and gas in a region stretching from Texas to Ohio.

“As long as I’ve been alive — and I’m 52 — this is the worst I’ve ever seen it,” said Wendy Quire, the general manager at the Brown Barrel restaurant in downtown Frankfort, Kentucky, the state capital built around the swollen Kentucky River.

“The rain just won’t stop,” Quire said Sunday. “It’s been nonstop for days and days.”

Officials diverted traffic and turned off utilities to businesses in the city as the river was expected to crest above 49 feet Monday to a record-setting level, said Frankfort Mayor Layne Wilkerson. The city’s flood wall system is designed to withstand 51 feet of water.

For many, there was a sense of dread that the worst was still to come.

“This flooding is an act of God,” said Kevin Gordon, a front desk clerk at the Ashbrook Hotel in downtown Frankfort. The hotel was offering discounted stays to affected locals.

Storms leaving devastating impact

The 18 reported deaths since the storms began on Wednesday included 10 in Tennessee. A 9-year-old boy in Kentucky was caught up in floodwaters while walking to catch his school bus. A 5-year-old boy in Arkansas died after a tree fell on his family’s home, police said. A 16-year-old volunteer Missouri firefighter died in a crash while seeking to rescue people caught in the storm.

The National Weather Service warned Sunday that dozens of locations in multiple states were expected to reach a “major flood stage,” with extensive flooding of structures, roads, bridges and other critical infrastructure possible.

In north-central Kentucky, emergency officials ordered a mandatory evacuation for Falmouth and Butler, towns near the bend of the rising Licking River. Thirty years ago, the river reached a record 50 feet (15 meters), resulting in five deaths and 1,000 homes destroyed.

The storms come after the Trump administration cut jobs at NWS forecast offices, leaving half of them with vacancy rates of about 20%, or double the level of a decade ago.

Why so much nasty weather?

Forecasters attributed the violent weather to warm temperatures, an unstable atmosphere, strong winds and abundant moisture streaming from the Gulf.

The NWS said 5.06 inches (nearly 13 centimeters) of rain fell Saturday in Jonesboro, Arkansas — making it the wettest day ever recorded in April in the city. Memphis, Tennessee, received 14 inches (35 centimeters) of rain from Wednesday to Sunday, the NWS said.

Rives, a northwestern Tennessee town of about 200 people, was almost entirely underwater after the Obion River overflowed.

Domanic Scott went to check on his father in Rives after not hearing from him in a house where water reached the doorstep.

“It’s the first house we’ve ever paid off. The insurance companies around here won’t give flood insurance to anyone who lives in Rives because we’re too close to the river and the levees. So if we lose it, we’re kind of screwed without a house,” Scott said.

In Dyersburg, Tennessee, dozens of people arrived over the weekend at a storm shelter near a public school clutching blankets, pillows and other necessities. Just days earlier the city was hit by a tornado that caused millions of dollars in damage.

Among them was George Manns, 77, who said he was in his apartment when he heard a tornado warning and decided to head to the shelter. Just days earlier the city was hit by a tornado that caused millions of dollars in damage.

“I grabbed all my stuff and came here,” said Mann, who brought a folding chair, two bags of toiletries, laptops, iPads and medications: “I don’t leave them in my apartment in case my apartment is destroyed.”

For others, grabbing the essentials also meant taking a closer look at the liquor cabinet.

In Frankfort, with water rising up to his window sills, resident Bill Jones fled his home in a boat, which he loaded with several boxes of bottles of bourbon.

This story was originally featured on Fortune.com



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