NEW YORK (PIX11) -- Dollar Tree plans to close nearly 1,000 stores over the next several years, the company announced Wednesday.
Dollar Tree, a Fortune 500 company, acquired Family Dollar for more than $8 billion in 2015 after a bidding war with rival bargain store Dollar General - but it's had difficulty absorbing the chain.
“We finished the year strong, with fourth-quarter results reflecting positive traffic trends, market share gains, and adjusted margin improvement across both segments,” said Rick Dreiling, Chairman and Chief Executive Officer. “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. As we look forward to 2024, we are accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.”
Dollar Tree shares tumbled down by 14 percent on Wednesday.
The chain plans to close about 600 Family Dollar stores in the first half of 2024, which is about 12 percent of all the company's stores.
It remains unclear what locations will be impacted the most by the company's downsizing efforts.
Matthew Euzarraga is a multimedia journalist from El Paso, Texas. He has covered local news and LGBTQIA topics in the New York City Metro area since 2021. He joined the PIX11 Digital team in 2023. You can see more of his work here.
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