Activist Fund Reduces Stake in U.S. Discount Chain Below 5%

Activist fund Mantle Ridge LP disclosed in an SEC filing dated June 24 (U.S. time) that it has cut its stake in Dollar Tree, Inc. (NASDAQ: DLTR) from over 5% to roughly 0.1%. According to the filing, Mantle Ridge, together with MR Cobalt Advisor and Paul C. Hilal, delivered more than 10 million shares of Dollar Tree stock in-kind to the fund’s limited partners, sold additional shares on the open market, and settled equity forward contracts tied to about 10.6 million shares—drastically reducing its ownership. The open-market sales executed to facilitate cash elections were priced at $111.31 per share, totaling approximately $248 million (around KRW 380 billion). The filing also states that Hilal will remain on Dollar Tree’s board but has no plans for new activist campaigns or changes in management control.

In its late-May earnings release, Dollar Tree raised its full-year adjusted earnings guidance, driven by sustained demand for everyday essentials, and announced plans to expand its multi-price strategy. As part of an ongoing portfolio overhaul, the company intends to open 400 new stores and close 75 locations in 2026. By moving away from a single-price image and increasing the share of items priced above $1.25, Dollar Tree is simultaneously shuttering certain outlets and lifting prices—eliciting mixed reactions from U.S. consumers and investors.

Dollar Tree is a leading U.S. discount retail chain specializing in low-priced household goods, renowned for growing through price competitiveness despite inflation and high interest rates. Facing rising labor and logistics costs and softening demand across America’s brick-and-mortar retail sector, major discount chains—including Dollar Tree—are defending profitability via price hikes, multi-price conversions, and store restructurings.