The discount retailer Dollar Tree Inc. (NASDAQ: DLTR) announced plans to close 1,000 stores operating under the Dollar Tree and Family Dollar brands.
The Chesapeake, Virginia-headquartered company reported its plans in a press release for its latest quarterly earnings report.
“During the fourth quarter of fiscal 2023, the Company announced that it had initiated a comprehensive store portfolio optimization review which involved identifying stores for closure, relocation, or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors,” the company said. “As a result of this review, we plan on closing approximately 600 Family Dollar stores in the first half of fiscal 2024. Additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each store’s current lease term.”
The company, which operates more than 16,000 stores in 48 states and five Canadian provinces, added that it incurred $594.4 million of charges in connection with the store portfolio review during the fourth quarter. It did not provide a list of which stores were being targeted for closure.
Dollar Tree closed the quarter with a loss of $1.71 billion, compared to the profit of $452.2 million from one year earlier. Despite the quarterly loss and announcement of store closures, Chairman and CEO Rick Dreiling considered the company’s financial performance to be successful.
“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains, and adjusted margin improvement across both segments,” said Dreiling. “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.”
Photo by Mike Mozart / Flickr Creative Commons
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