Dollar Tree to close approximately 1,000 stores

Dollar Tree on Wednesday announced plans to close nearly 1,000 U.S. stores in its portfolio after suffering steep quarterly losses.

As part of a portfolio optimization initiative first announced late last year, the company plans to close 600 Family Dollar stores in the first half of 2024. An additional 370 stores will close due to lease expiration, the company announced in its fourth quarter results. report.

The company suffered a net loss of $1.71 billion, or $7.85 per share, in the quarter.

Family Dollar recalls Avil that was stored outside the specified temperature

Dollar Tree will close 600 Family Dollar stores in the first half of 2024. (Jin Lee/Bloomberg via Getty Images/Getty Images)

Dollar Tree CEO Rick Dreyling said in a December earnings call that the company’s financial results were affected by unexpected costs from recalls of various over-the-counter drugs and medical devices that occurred in about 20 states last fall. , said same-store sales at Family Dollar stores were weak.

“To this end, we have initiated a comprehensive review of the Family Dollar portfolio to address unprofitable stores that are not consistent with our transformation vision,” Dreyling told analysts on a conference call.

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This includes identifying stores that may be closed, rebranded, or relocated as the company strives to “ensure that each asset under the Family Dollar banner maximizes its value to shareholders.” This included, Dreiling said.