In a significant development for the retail industry, Dollar Tree has announced the closure of approximately 600 Family Dollar stores across the United States within this year, following a notable underperformance in 2023. The decision comes as part of a broader strategy to enhance profitability and streamline operations. Additionally, the company plans to close 370 Family Dollar stores and 30 Dollar Tree stores over the next few years as their respective leases expire, as detailed in a press release earlier this month.
Rick Dreiling, the Chairman and Chief Executive Officer of Dollar Tree, expressed optimism about the company’s future despite the closures. “Although we are at the beginning stages of our transformation journey, I am immensely proud of our team’s achievements in 2023. Looking ahead to 2024, we are excited to expedite the rollout of our multi-price strategy at Dollar Tree and take decisive steps to boost profitability and unlock value at Family Dollar,” Dreiling stated.
While the company has yet to disclose all the specific locations slated for closure, local news outlets have confirmed shutdowns in various states. These closures, many of which lack official end dates, have prompted stores to offer significant discounts to clear out inventory.
Among the reported closures are Family Dollar stores in Middletown, New Jersey; Tallahassee, Florida; Peoria, Illinois; Lynchburg, Virginia; East Liverpool, Ohio; Slocomb, Alabama; Wilmington, North Carolina; Humansville, Missouri; Willow Springs, Missouri; Wichita, Kansas; Clearwater, South Carolina; and Elkins, West Virginia. These closures are part of a broader effort to optimize the company’s store portfolio and improve financial performance.
Despite these closures, Dollar Tree has demonstrated growth by opening 641 new stores in the last financial year, including 219 in the fourth quarter alone. Moreover, a new Family Dollar store is set to open in Rochester, New York, replacing a former Walgreens location at 670 Thurston Road.
Dollar Tree’s acquisition of Family Dollar in July 2015 marked a significant expansion of its retail footprint. Bob Sasser, the CEO at the time, described the acquisition as a “transformational opportunity” to offer a wider range of merchandise and values to a broader customer base.
As of February 3, Dollar Tree, a Fortune 200 company, operates 16,774 stores across 48 states and five Canadian provinces under the Dollar Tree, Family Dollar, and Dollar Tree Canada brands. This extensive network underscores the company’s significant presence in the discount retail sector.
Contributions to this article were made by Ahjané Forbes and Cheryl McCloud of the USA TODAY NETWORK.