Dollar Tree to Close Nearly 1,000 Family Dollar Stores Due to Underperformance
Discount retail giant Dollar Tree has announced plans to close nearly 1,000 Family Dollar stores after experiencing significant underperformance in 2023. The company plans to shut down approximately 600 Family Dollar locations in the first half of fiscal 2024, with additional closures expected in the coming years.
While Dollar Tree’s CEO sees a long runway of growth ahead for the company, they are taking decisive action to improve profitability at Family Dollar. The company has not revealed specific details about when the store closures will begin or which states will be affected.
Dollar Tree acquired Family Dollar in July 2015 in order to offer a broader merchandise assortment for customers. The company currently operates 16,774 stores under the Dollar Tree, Family Dollar, and Dollar Tree Canada brands.
Family Dollar stores have recently faced challenges, including being hit with a record $41.6 million fine for storing items in a rat-infested warehouse. The company admitted to shipping products from the warehouse with evidence of rodents, leading to a costly $34 million product recall for Dollar Tree.
The announcement of store closures is the latest issue for the discount chain, following the warehouse fines. Dollar Tree’s decision to close nearly 1,000 Family Dollar stores highlights their commitment to addressing underperformance and improving overall profitability for the company.
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