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Dollar Tree Announces Plans to Shutter 1K Family Dollar Stores; Rick Dreiling Details

Dollar Tree Announces Plans to Shutter 1K Family Dollar Stores; Rick Dreiling Details


NEW YORK
Friday, March 15th, 2024

A new strategy is positioning Dollar Tree to strengthen its financial performance through changes to its store footprint. The retailer has made plans to close nearly 1,000 stores across the Family Dollar banner.

Rick Dreiling, Chief Executive Officer, Dollar Tree“Persistent inflation and reduced government benefits continue to pressure the lower-income consumers that comprise a sizable portion of Family Dollar’s customer base,” noted Chief Executive Officer Rick Dreiling on a recent call with analysts.

As reported by CNN, Family Dollar is set to close a total of 600 locations this year, and 370 over the next several years as the leases expire. Dollar Tree will also close 30 of its banners as leases expire.

Dollar Tree announced plans to close nearly 1,000 stores across its popular Family Dollar bannerFamily Dollar currently has around 8,000 stores across the United States, with the closure of these nearly 1,000 locations improving the company’s overall profitability. In recent years, the chain has closed hundreds of Family Dollar stores.

Dollar Tree purchased Family Dollar for $8.5 billion in 2015, according to the source, aiming to grow its customer base and reduce costs while elevating its standing among other discount retail chains such as Dollar General.

As this strategy plays out, be sure to keep checking in with DMN.

Dollar Tree
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