Around 1,000 Family Dollar And Dollar Tree Locations Set To Close

Dollar Tree intends to close approximately 1,000 locations of its namesake general discount stores and Family Dollar, a subsidiary chain.

The majority of the closures will be Family Dollar locations.

“Family Dollar will close 600 locations in the first half of 2024 and 370 stores over the next several years as store leases expire, the company said Wednesday,” the New York Post reports.

JUST IN – Family Dollar and Dollar Tree to close nearly 1,000 storeshttps://t.co/oSivnJ8ZIO

— Insider Paper (@TheInsiderPaper) March 13, 2024

From the New York Post:

Dollar Tree, which bought Family Dollar for $8.5 billion in 2015, will also be closing 30 stores as leases expire.

“Our biggest problem right now is getting enough merchandise into the stores fast enough so the consumer can respond,” said CEO Rick Dreiling, adding that Family Dollar was continuing to be hurt by macroeconomic uncertainties.

Dollar stores have suffered in recent months as consumer spending habits have shifted, favoring e-commerce platforms such as Temu, the Chinese app that has ballooned in popularity for offering everyday must-haves on the app for as low as 99 cents.

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In November, Dollar Tree — which operates more than 16,700 stores, including 8,400-plus Family Dollar locations — had said it would be reviewing its Family Dollar business, including potentially shutting down underperforming stores, to return to growth.

Family Dollar and Dollar Tree to close 1,000 stores after $1.71 billion net loss https://t.co/ML0ShLRvqS

— John Solomon (@jsolomonReports) March 13, 2024

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

The announced closures come on the heels of Family Dollar receiving a $40 million fine for a rat infestation at a warehouse that forced hundreds of stores to temporarily close.

“Family Dollar was hit with a record fine this year for violating product safety standards after selling items that were stocked in a rat-infested warehouse in West Memphis filled with live, dead and decaying rodents,” CNN Business noted.

The Justice Department said the $41.6 million fine was “the largest-ever monetary criminal penalty in a food safety case.”

Family Dollar Fined More Than $40M Over Rat-Infested Arkansas Warehouse https://t.co/DLLinj5qBD

— LeoTerrell (@TheLeoTerrell) February 27, 2024

Per CNN Business:

Decades-high inflation has hit shoppers hard, and a general consumer pullback has impacted Family Dollar customers and the chain’s profits, exacerbating its battle with discount competitors such as Dollar General, Walmart and others.

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In addition, the reduction in benefits for the Supplemental Nutrition Assistance Program, or SNAP, has left struggling families with as much as $250 less per month. Discount stores and consumer goods companies say they have felt the impact of that loss.

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

This is a Guest Post from our friends over at 100 Percent Fed Up.

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