Family Dollar will be closing about 600 stores over the first half of 2024.
Another 370 Family Dollar stores and 30 Dollar Tree stores will close over the next several years as leases expire, according to an announcement today.
No specifics on which stores will be closed have been released.
Family Dollar has more than 8,000 stores across 49 states and was bought by Dollar Tree in 2015 for $8.5 billion, according to data company ScrapeHero.
What stores are Family Dollar and Dollar Tree closing?
The discount chain hasn’t announced which stores will be closed.
In the fourth quarter reports for Dollar Tree’s 2023 fiscal year, the company announced it would close approximately 600 Family Dollar Stores in the first half of fiscal year 2024. These closures would be followed by about another 370 in the coming years.
“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 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.”
Family Dollar, Dollar Tree’s most recent quarter results
Consolidated net sales increased 11.9% to $8.63 billion, the company said, but the operating loss was $1.89 billion. Net loss was $1.71 billion.
Dollar Tree same-store net sales increased 6.3%, driven by a 7.1% increase in traffic, partially offset by a 0.7% decline in average ticket.
Dollar Tree same-store net sales increased 6.3%, driven by a 7.1% increase in traffic, partially offset by a 0.7% decline in average ticket.
Family Dollar, Dollar Tree announced a portfolio review last year
During the fourth quarter of fiscal year 2023, the discount chain announced it had initiated a comprehensive store portfolio optimization review to “identify stores for closure, relocation, or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors.”
That review was used to determine which 600 Family Dollar stores would be closed in the first half of 2024.
Another 370 Family Dollar and 30 Dollar Tree stores will be closed over the next several years at the end of each store’s current lease term.
How many Dollar Tree stores are in Iowa?
Dollar Tree, a Fortune 200 Company, operated 16,774 stores across 48 states and five Canadian provinces as of Feb. 3. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada.
There are 48 cities with Family Dollar stores in Iowa. Des Moines itself has five different Family Dollar stores.
Dollar Tree is located in 61 cities in Iowa, with six in Des Moines itself.
Family Dollar hit with record fine for storing items in rat-infested warehouse
The recent announcement is the latest in a string of problems for the discount chain.
In February, Family Dollar Stores agreed to pay $41.6 million for storing food, cosmetics, drugs and medical devices in a rat-infested warehouse in Arkansas for years, court records show.
The Dollar Tree-owned discount chain store took a plea agreement in February after being charged with one misdemeanor count of debasing FDA-regulated products by holding them in unsanitary conditions, according to court documents.
By accepting the plea, the company admitted to shipping products until January 2022 from its Arkansas distribution center, where the FDA found evidence of live rodents, dead and decaying rodents, rodent feces and urine, and evidence of gnawing and nesting, court records show.
Dollar Tree said during its fourth-quarter earnings report in March 2022 that the product recall at Family Dollar stores linked to the rodent infestation cost the company $34 million.
Kate Kealey is a general assignment reporter for the Register. Reach her at kkealey@registermedia.com or follow her on Twitter at @Kkealey17.
First appeared on www.desmoinesregister.com