One Tuscaloosa Dollar Tree Opens, Another Closes and a Third Is Coming Soon

A new Dollar Tree discount store has opened in Tuscaloosa, replacing an older location that is being demolished to make way for the future, and a third store is expected to open soon in a recently vacated storefront a few miles away.

It's a time of rapid change for the Dollar Tree brand in the Druid City as the locally loved store owned by businessman Stan Pate at 900 Skyland Boulevard East closes to make way for future development of the old McFarland Mall site.

Dollar Tree shoppers need not despair, though - a new store, also owned by Pate, is now open virtually right across the street at 1525 Skyland Boulevard East.

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The old location will finally be demolished, making way for what Pate has dubbed "Project Encore," his planned redevelopment of the mall property into something new for the people of Tuscaloosa.

"It’s a move in the right direction that will expedite the plans we have for the McFarland Mall location," city councilman Cassius Lanier told the Tuscaloosa Thread Thursday. "This will allow Mr Pate to complete demolition on the Encore site as we continue to move things forward for District 7! I’m excited about our future."

Pate's pitch to draw new-to-market restaurants and retailers to the site earned him a $65 million tax abatement from the Tuscaloosa City Council for Project Encore - the largest in city history to date.

That's not a cash payment - instead, it is an agreement that Pate will keep most of the first $65.1 million in tax revenue generated by tenants on the site.

"This is eat what I kill, OK?" Pate told the city council in May 2024. "But we're pretty good hunters."

Meanwhile, a few miles away, another Dollar Tree is also on the way for shoppers on Tuscaloosa's Veterans Memorial Parkway.

The building was the longtime home of the city's JOANN fabric store, but as the Thread reported earlier this year, that location closed along with about 500 others as the company struggles through bankruptcy. 

Their loss will be Dollar Tree's gain, as efforts are underway to turn the space into another location for the value retailer.

The Virginia retailer is focused on growth after completing the sale of its Family Dollar business segment and is looking to add to the over 9,000 stores it operates.

“With a singular focus on our core business, we are doubling down on what we do best – delivering value, convenience, and discovery to our customers every day," Dollar Tree CEO Mike Creed said in a press release this week. "Now more than ever before, we are poised to accelerate our growth, innovate faster, and unlock our full potential as a category leader in value retail.”

For more exclusive coverage of restaurant and retail development in West Alabama, stay connected to the Tuscaloosa Thread.