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arlier this year Dollar Tree (DLTR) opened a new location in West Hartford, Connecticut, taking over a former Elm Theatre building that had been a Walgreens for nearly two decades. Unlike most Dollar Tree conversions of freestanding drugstores, this site was a historic theater, adding a unique twist to the retailer’s expansion strategy.

    Dollar Tree has been aggressively converting existing retail spaces. In 2023 it acquired 148 Party City leaseholds from the bankrupt retailer, rebranding the “warm‑box” sites within months. Minimal exterior work was needed—just new signage—and interior changes were modest, swapping Party City’s cluttered aisles for a clean layout with the Dollar Tree green logo and simple checkout. Many former Party City employees were rehired, allowing the company to open over 100 new stores in a few months, faster than negotiating a single new lease.

    In 2024 Dollar Tree added roughly 650 new stores, largely through repurposing. It purchased about 170 leases of 99 Cents Only Stores at a May 2024 bankruptcy auction. By June the court approved the sale, giving Dollar Tree immediate possession. Eighty‑five of the former 99 Cents Only sites were rebranded and opened within three months; the rest followed by year‑end. The 99 Cents Only chain had generated about $2.1 B in 2023 revenue, with many locations profitable on a “four‑wall” basis, making the transition attractive for a retailer with a similar product mix and customer base. CEO Michael Creedon emphasized the urgency of reopening to prevent customers from shifting to competitors. Conversions were rapid—some sites opened in 30–60 days, all within six months of acquisition.

    The 99 Cents Only properties offered a ready‑to‑move inventory of sites, mostly in California (70 % of locations), a high‑barrier market where Dollar Tree had been under‑penetrated. Although the stores were larger (10,000–25,000 sq ft) than the typical Dollar Tree prototype, Creedon noted that converting two 99 Cents Only stores equaled opening three Dollar Trees.

    Together, the Party City and 99 Cents Only conversions added over 300 new Dollar Tree stores, roughly one‑third of the company’s new‑store growth in 2024–25. The next likely targets for Dollar Tree’s repurposing strategy remain to be seen.