Family Dollar sales up; investor slashes stake

Less than a week after getting shareholder approval to sell itself to Dollar Tree Inc., Family Dollar said fewer discounts led to increased December sales.

For the month ended Jan. 3, Family Dollar said its sales increased 3.6% to $1.21 billion from a year earlier. Same-store sales increased 1.2%, compared with a 3% decline last December.

Family Dollar became the target of a prolonged takeover battle last year after agreeing in July to be bought by Dollar Tree Inc. in a deal now worth $8.7 billion. Family Dollar has struggled in recent quarters as its profit and margins have slipped, underscoring the importance of a deal for the company.

In other developments, investment fund Trian Fund Management LP has reportedly reduced its stake in Family Dollar Stores Inc. from 7% to a little more than 2%.

According to the Wall Street Journal, the fund, headed by activist investor Nelson Peltz, had publicly supported the Family Dollar-Dollar Tree merger. Triad has an executive on the Family Dollar board. The SEC has confirmed Family Dollar shareholder approval of the Dollar Tree merger.