In fact, Credit Suisse analysts say it would likely have made more sense for Dollar General to acquire Family Dollar. The offering is more in line, and there is a limited overlap in terms of where stores are located.
Family Dollar stores are generally found in urban areas while Dollar General stores are typically located in rural places.
Dollar Tree, on the other hand, stays true to the dollar-store model, offering all items for $1. It offers a larger number of lesser-known brands, which enables it to keep prices low.
According to Credit Suisse analysts, the store's shopping experience is one of the main reasons why Family Dollar has struggled to appeal to customers. They argued that store renovations could be the ticket to success.
"The store base was in complete disarray three years ago. Incremental remodel activity will go a long way toward stabilizing the same-store sales," the analysts wrote.
Family Dollar is expected to remodel 450 stores this year.
Our verdict: The store was definitely easy to shop and in better condition than what we encountered at one of its sister Dollar Tree locations when we visited earlier this year. However, the mix of bulk and normally sized items made the pricing feel confusing and, ultimately, expensive.
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