Family Dollar isn’t a sure thing
Store still likely to locate here, but has tempered its commitment
A potential Family Dollar store in Marion landed on a report that store district manager Chris Ammerman received this month.
Once a location ends up on this report, he said Tuesday, it becomes likely Family Dollar will open a store there.
Likely, but not a certainty. Astore is certain only when it is assigned a number, he said, and that hasn’t happened yet for Marion.
Marion officials announced a deal with Family Dollar in April, but Ammerman said Tuesday that Family Dollar still was negotiating the possibility of placing a store in Marion. In these type of cases, he said, the question for Family Dollar usually revolves around lease expenses.
Marion City Administrator Doug Kjellin said this was a common practice for large corporations.
When he worked for Tractor Supply, a real estate board evaluated each store proposal. He said Tractor Supply’s strategy was to purchase the land and then sell it to out-of-state investors setting up a sale on the lease.
Kjellin said this is usually a no-brainer for investors who are guaranteed a return.
Because negotiations are still in progress, it will be six months to a year before Family Dollar could come to Marion. Construction will not begin this fall, as was previously reported by Marion officials.
Kjellin said Family Dollar had tempered its commitment to Marion because of a “malaise in the retail market.”
Last modified June 6, 2012