*Dollar Tree plans to shutter nearly 1,000 of its Family Dollar stores due to significant underperformance last year.
The announcement comes after Dollar Tree reviewed its store performance in the fourth quarter of 2023 to determine which locations to close, relocate, or re-banner, USA Today reports.
“As a result of this review, we plan on closing approximately 600 Family Dollar stores in the first half of fiscal 2024. Additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each store’s current lease term,” the company said in the press release.
“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains, and adjusted margin improvement across both segments,” said Chairman and Chief Executive Officer, Rick Dreiling.
Dollar Tree and Family Dollar to close nearly 1,000 discount stores https://t.co/zKUwIh4GcW pic.twitter.com/ahfqAetcHI
— New York Post (@nypost) March 13, 2024
“While we are still in the early stages of our transformation journey, I am proud of what our team accomplished in 2023 and see a long runway of growth ahead of us,” Dreiling continued. “As we look forward in 2024, we are accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.”
We reported previously that a rodent infestation at a Family Dollar warehouse in Arkansas prompted the discount chain to recall a wide range of products and temporarily close more than 400 stores in six states in 2022.
As of February 3, Dollar Tree operated 16,774 stores spanning 48 states and five Canadian provinces. These stores are branded Dollar Tree, Family Dollar, and Dollar Tree Canada.
In a news release, Chief Executive Officer Bob Sasser called the closure of several Family Dollar stores “a transformational opportunity for our business to offer broader, more compelling merchandise assortments, with greater values, to a wider array of customers.”
READ MORE: Family Dollar Recalls Products After Rodent Infestation, Closes 400 Stores [VIDEO]
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