[ad_1]
Dollar Tree, the discount retailer that owns Family Dollar, has announced it will close approximately 1,000 stores across the United States.
“We plan to close approximately 600 Family Dollar stores in the first half of fiscal year 2024,” Dollar Tree said in its 2023 fourth-quarter earnings report. “Additionally, approximately 370 Family Dollar stores and approximately 30 Dollar Tree stores are scheduled to close over the next several years as each store’s current lease expires.”
The company did not say which stores would close, but said the decision was made after evaluating underperforming stores in its portfolio.
RELATED: Dollar Tree adopts plan to combat store theft and declining profits
Family Dollar was acquired by Dollar Tree in 2015 in a deal estimated at $8.5 billion.
The news comes after Family Dollar was found to have been storing cosmetics, pharmaceuticals and medical devices in unsafe ways for years, leading to a $41.6 million plea deal with the FDA last month.
Last summer, the company settled a class-action lawsuit for $1.35 million over employee complaints about unsafe working conditions at its stores.
In its fourth-quarter 2023 earnings report, the company reported that same-store net sales at Dollar Tree-branded chain stores increased 6.3%, while Family Dollar stores decreased 1.2% in the same area.
“Fourth quarter results reflect strong traffic trends, market share gains and improved adjusted margins across both segments,” Rick Dreyling, Dollar Tree Chairman and CEO, said in a release. We ended the year on a strong note.” “While we are still in the early stages of our transformation journey, I am proud of what our team has achieved in 2023 and know we have a long runway of growth ahead of us. thinking about.”
Dollar Tree was down nearly 11% from a year ago as of Thursday afternoon.
[ad_2]
Source link
