Family Dollar and Dollar Tree Announce Closure of Approximately 1,000 Stores

HI INDIA NEWS DESK
ACROSS AMERICA — Around 1,000 Family Dollar and Dollar Tree stores are slated for closure, as announced by their parent company, Dollar Tree, Inc., on Wednesday.

The closures were revealed in Dollar Tree’s fourth fiscal quarter results report for 2023. It is estimated that approximately 600 Family Dollar stores will shut down this year, with an additional 370 Family Dollar and 30 Dollar Tree stores to follow suit over the next several years.

With roughly 8,000 stores nationwide, Family Dollar forms a significant portion of Dollar Tree’s retail presence, which spans over 15,000 stores across the United States.

This decision follows the company’s previous announcement to review and optimize its store portfolio to address underperforming locations through closure, relocation, or rebranding initiatives.

Rick Dreiling, Dollar Tree’s chairman and CEO, cited persistent inflation and reduced government benefits as ongoing challenges affecting their predominantly lower-income customer base, primarily served by Family Dollar.

The news led to a more than 13 percent drop in Dollar Tree’s shares, marking their lowest level for the year as reported by CNN.

Despite the closures, Dollar Tree expressed optimism about its performance, noting positive traffic trends, market share gains, and margin improvements in the fourth quarter of 2023.

During this period, the company opened 219 new stores, contributing to a total of 641 store openings throughout 2023.

Family Dollar, renowned for its affordable range of household essentials, food items, health and beauty products, toys, and clothing, was acquired by Dollar Tree in 2015.

The discount retail sector has faced significant challenges in recent years, with Family Dollar announcing store closures in 2019. Additionally, last month, the chain was fined a record $42 million for unsanitary storage conditions, including a rodent-infested distribution center, according to federal officials.