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Discount retailer Family Dollar is partnering with DoorDash to offer on-demand delivery from roughly 7,000 stores. The partnership is the first major strategic move for the chain since being acquired by private equity investors four months ago.
Convenience play: The partnership, which includes availability on DashPass, is being framed as a way to offer shoppers convenience for household essentials and groceries ahead of the busy holiday season. Family Dollar's CCO Chris Hooks said the goal is making shopping "easier and more accessible."
A dollar short: The move places Family Dollar in direct competition with its chief rival, Dollar General, which has had a significant head start with a foothold on DoorDash since 2021. The deal is a necessary step to close the convenience gap between the two discount giants.
Under new management: This is the first major test of the turnaround strategy promised by new owners Brigade Capital and Macellum Capital Management. The private equity firms acquired the chain just four months prior with a pledge to "reinvigorate" the brand.
While a necessary step to modernize and compete, the success of the delivery partnership is just the first test in a much larger effort to turn around the long-struggling retail brand under new leadership. Family Dollar is the latest in a long line of major retailers turning to third-party platforms for delivery, a trend that has seen companies like Old Navy and Home Depot also ink deals with services like DoorDash and Uber Eats to expand their reach.
