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Dollar Tree will close 1,000 stores with the majority being under its Family Dollar banner, the discount retailer announced Wednesday.
Why it matters: The store closings leave a void for …
#dollartree #dollargeneral #msnbc #fox #cnbc #cnn #foxnews
Dollar Tree will close 1,000 stores with the majority being under its Family Dollar banner, the discount retailer announced Wednesday.
Why it matters: The store closings leave a void for consumers who have been turning to discount and dollar stores for groceries and essentials.
Driving the news: Dollar Tree said Wednesday it will close 600 Family Dollar stores in the first half of fiscal 2024.
Approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each store's current lease term, the company said.
Catch up quick: Dollar Tree and Family Dollar have been under scrutiny in recent years for product safety issues.
In 2022, the company shuttered a Family Dollar distribution facility in Arkansas that had become infested with rats, triggering a massive recall.
The infestation led to the facility's closure and steep losses, though the company recently said it was cleaning up the site and reopening it.
The company agreed in February to pay nearly $42 million in penalties in a settlement with the Justice Department.
The retailer has since announced sweeping changes to its executive suite and operations, including supply chain investments.
But the company still posted an operating loss of $882 million in the fiscal year ended Feb. 3 as it continues to deal with disappointing results at Family Dollar.
The intrigue: The closures represent a reversal of the retailer's rapid expansion, which included its 2015 acquisition of Family Dollar.
"Basically, almost ten years on, Dollar Tree is still sifting through the mess it inherited and has not been able to completely turn around," GlobalData managing director Neil Saunders wrote Wednesday.
He said the decision "is effectively Family Dollar running up the white flag of surrender in the value grocery battle," where Walmart, Aldi and Dollar General have been advancing.
"Despite some recent investments in price and a..
