Dollar Tree announced on Wednesday that it has acquired the leases of 170 stores formerly operated by 99 Cents Only in Arizona, California, Nevada, and Texas. The acquisition follows 99 Cents Only filing for Chapter 11 bankruptcy, which led to the closure of its 371 locations. Dollar Tree also obtained the intellectual property of 99 Cents Only, giving it the option to retain the brand for some stores or even use it for new openings.

The move is expected to benefit budget-conscious shoppers who had been disappointed by the shutdown of 99 Cents Only stores. Michael Creedon Jr., Dollar Tree’s chief operating officer, emphasized that the acquired locations are in premium retail centers, enabling Dollar Tree to expand its presence on the West Coast. The company plans to reopen these stores under the Dollar Tree brand beginning in fall 2024.

Additionally, Ollie’s Bargain Outlets acquired 11 former 99 Cents Only stores in Texas for $14.6 million. These stores, located in cities like Houston, San Antonio, and Dallas, will become Ollie’s Bargain Outlets by June.

This acquisition provides Dollar Tree a more cost-effective way to grow its footprint compared to building new stores, especially as the retail sector grapples with high inflation and rising theft rates. The chain has been transitioning from its original price point of $1 to a higher cap of $7 to manage cost pressures.