Dollar Tree to Close Hundreds of Stores

After missing market expectations for holiday-quarter sales and profit, Dollar Tree laid out plans to shutter 970 of its Family Dollar banner stores, reports Reuters.

A consumer spending shift to lower-margin essentials away from higher-margin discretionary goods, combined with increased competition from rivals such as Walmart and Chinese ecommerce platform Temu, have caused dollar stores to struggle, according to the report.

External factors also affect the chain.

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

The retail parent currently operates roughly 16,774 stores. It plans to close 600 Family Dollar stores in the first half of FY 2024, then, as lease terms expire over the next few years, shut 370 additional Family Dollar locations and 30 Dollar Tree stores. Full Story (Subscription Required)