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family dollar be closing about 600 stores during the first half of 2024.
Another 370 Family Dollar stores and 30 dollar tree The stores will close over the next few years as leases expire, according to an announcement today.
No details have been released about which stores will close.
Family Dollar has more than 8,000 stores in 49 states and was purchased by Dollar Tree in 2015 for $8.5 billion, according to company data. scrape hero.
What stores are Family Dollar and Dollar Tree closing?
The discount chain has not announced which stores will remain closed.
In it fourth quarter reports For Dollar Tree’s fiscal 2023, the company announced it would close approximately 600 Family Dollar Stores in the first half of fiscal 2024. These closures would be followed by about 370 more in the coming years.
“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains and adjusted margin improvements in both segments,” said Rick Dreiling, president and CEO.
“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 road of growth ahead. Looking ahead to 2024, we are accelerating our launch of multi-pricing at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.”
Family Dollar, Dollar Tree’s latest quarterly results
Consolidated net sales increased 11.9% to $8.63 billion, the company said, but the operating loss was $1.89 billion. The net loss was $1.71 billion.
Dollar Tree’s same-store net sales increased 6.3%, driven by a 7.1% increase in traffic, partially offset by a 0.7% decrease in average ticket.
Dollar Tree’s same-store net sales increased 6.3%, driven by a 7.1% increase in traffic, partially offset by a 0.7% decrease in average ticket.
Family Dollar and Dollar Tree announced a portfolio review last year
During the fourth quarter of fiscal 2023, the discount chain announced that it had initiated a comprehensive store portfolio optimization review to “identify stores for closure, relocationn, or re-bannering based on an evaluation of current market conditions and the performance of each store, among other factors.”
That review was used to determine what 600 Family Dollar stores would close in the first half of 2024.
Other 370 Family Dollar and 30 Dollar Tree stores will close for the next several years at the end of each store’s current lease term.
How many Dollar Tree stores are there in Iowa?
Dollar Tree, a Fortune 200 company, operated 16,774 stores in 48 states and five Canadian provinces as of February 3. The stores operate under the Dollar Tree, Family Dollar and Dollar Tree Canada brands.
There is 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, and six in Des Moines itself.
Family Dollar receives record fine for storing items in rat-infested warehouse
The recent announcement is the latest in a series of problems for the discount chain.
In February, Family Dollar Stores agreed to pay $41.6 million for storing food, cosmetics, medicines and medical devices in a rat-infested warehouse in Arkansas for years, court records show.
The discount store chain owned by Dollar Tree took a plea deal in february after being charged with a misdemeanor for degrading FDA-regulated products by keeping them in unsanitary conditions, according to court documents.
In accepting the plea, the company admitted to shipping products through January 2022 from its Arkansas distribution center, where the FDA found evidence of live rodents, dead and decomposing rodents, rodent feces and urine, and evidence of rodents and nesting. , court records show.
Dollar Tree said during his fourth quarter earnings report in March 2022 that the product recall at Family Dollar stores linked to rodent infestation cost the company $34 million.
Kate Kealey is a general assignment reporter for the Register. Contact her at kkealey@registermedia.com or follow her on Twitter at @kkealey17.
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