With over 8,000 locations in all states except Alaska and Hawaii, it was the second largest retailer of its type in the United States until it was acquired by Dollar Tree in 2015 when its headquarters operations were moved from Matthews, a suburb of Charlotte, North Carolina, to Chesapeake, Virginia, located in South Hampton Roads.

[3] In June 2014, activist investor and major shareholder[4] Carl Icahn demanded that Family Dollar be immediately put up for sale.

[6][7] The sale delivered a windfall to the company's biggest shareholder, Carl Icahn, who had acquired his 9.4 percent stake in June 2014.

The company opened distribution centers in West Memphis, Arkansas; Front Royal, Virginia and Duncan, Oklahoma.

Since 2000, the pace of growth increased significantly, with the addition of about 3,500 new stores, and new distribution centers opening in Morehead, Kentucky; Maquoketa, Iowa; Odessa, Texas; Marianna, Florida; and Rome, New York.

[18] Family Dollar operates 11 distribution centers - the latest of which opened in St. George, Utah on October 16, 2013.

[20] In May 2020, eight Family Dollar stores were damaged by rioting and looting during the George Floyd protests in Minneapolis–Saint Paul, with two locations being destroyed by arson during the widespread civil unrest.

[21][22][23] In February 2022, Family Dollar temporarily closed 400 stores in Alabama, Arkansas, Louisiana, Mississippi, Missouri, and Tennessee and recalled certain products purchased from January 1, 2021, through the present after the FDA found unsanitary conditions, including a rodent infestation, at the company’s distribution center in West Memphis, Arkansas.

[24][25] On May 18, 2022, the company announced that the West Memphis distribution center would be shut down permanently on or before July 17, 2022 with over 300 employees affected.

[28][29] In March 2011, Family Dollar rejected a takeover offer by Nelson Peltz's Trian Fund Management reportedly between $55 and $60 a share.

The enterprise value of the Dollar General bid was $9.7 billion compared to that of Dollar Tree of $9.2 billion, while the quantum return to shareholders was varying as the stock and cash deal valuation was subjected to fluctuations of price of the competing bidders stock.

[38] On March 6, 2019, the retailer announced that it will close up to 400 stores nationwide due to heavy pressure from an activist investor.

[39] The company has deployed a newer store format known as "H2" in new and renovated locations, which have a larger focus on groceries and incorporate Dollar Tree merchandise.