Dollar Tree considers selling Family Dollar

(CNN) - Dollar Tree is considering selling or spinning off Family Dollar.

The company acquired the chain in 2015 for $8.5 billion.

Dollar Tree was hoping the merger would help it compete with bigger rivals, but the company is still wading through the mess it inherited with Family Dollar.

Analysts say a combination of messy stores, high prices and too much expansion has plagued Family Dollar.

The CEO of Dollar Tree said the two chains’ “unique needs” have led to the possible split.

While both are discount stores, Family Dollar caters to low-income customers in predominantly urban areas whereas Dollar Tree has more of a middle-income clientele in the suburbs.