Dollar Tree closing 1,000 stores
Dollar Tree closing 1,000 stores
Dollar Tree is shuttering 1,000 stores in the coming years, though approximately 600 Family Dollar store closures will come in the first half of fiscal 2024. Of the remaining 400 stores, 30 closures will be Dollar Tree with the balance being more Family Dollar locations.
The stores closing after the first half of 2024 will shut down at the end of each store’s current lease term.
“While we are still in the early stages of our transformation journey, I am proud of what our team accomplished in 2023 and see a long runway of growth ahead of us," said Rick Dreiling, chairman and CEO. "As we look forward in 2024, we are accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.”
During the fourth quarter of fiscal 2023, Dollar Tree announced that it had initiated a comprehensive store portfolio optimization review that involved identifying stores for closure, relocation or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors. The 1,000-store decision was a direct result of this review.
In the fourth quarter of 2023, the company incurred $594.4 million of charges in connection with the store portfolio review. Additionally, it incurred a goodwill impairment charge of $1.07 billion and a trade name intangible asset impairment charge of $950 million.