Dollar Tree is getting rid of almost 1,000 stores nationwide due to steep losses.
The company made the grim announcement on Wednesday. Detailing the severity of the situation, Dollar Tree revealed that 600 Family Dollar locations will close in the first half of 2024. Another 370 Family Dollars and 30 Dollar Trees will also shutter within the next few years when their leases expire.
The news comes as the company reported a massive net loss of $1.71 billion in the quarter ending February 3rd. There are currently 16,774 Family Dollar and Dollar Tree locations in the U.S. The challenges of the brand have come as the economy as a whole remains unstable. Additionally, locations have faced an influx in thefts in recent years, which execs acknowledged during Wednesday’s earning call.
CFO Jeff Davis remains optimistic about Dollar Tree’s earnings this year despite the closures. Davis shared that the company is “making solid progress on our key growth initiatives” and says he is “encouraged by the early results of our business transformation efforts.”
In 2016, the company began cutting back, eliminating 370 positions during its acquisition of Family Dollar. Layoffs hit Dollar Tree once again in 2023 when it was forced to lay off 90 positions at its corporate offices in Chesapeake, Virginia. Now, with the high number of stores closing their doors, it’s likely that many retail employees may be without a job if Dollar Tree doesn’t reassign them to other stores.
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