Dollar Tree has announced plans to close 600 Family Dollar store locations in 2024, in addition to an extra 370 Family Dollar stores and 30 Dollar Tree locations over the next few years. This move comes as the discount retailer’s family of brands has struggled due to inflation impacting its low-income shoppers’ wallets. The closures, representing about 15% of its Family Dollar locations, are a result of more customers shopping around for better deals and increased incidents of shoplifting affecting the retailer’s profits.
The closures are expected to have a significant impact on some communities, potentially leaving them without a key store and employment opportunities. According to Dominick Miserandino of RetailWire, these stores may be crucial for the entire community and could have been one of the few sources of employment in the area.
Dollar Tree, which acquired Family Dollar for over $8 billion almost a decade ago, has not released a comprehensive list of the locations it is closing. The company stated that the decision to close the 600 Family Dollar locations this year was made after a thorough review of its store portfolio to address underperforming stores and invest in improved store standards and growth. However, no specific list of closure locations has been provided.
While the company has not disclosed a complete list of closures, some locations have already started offering sales of up to 50% off, according to local media reports. Notable closures include a Family Dollar in Slocomb, Alabama, and another in Tallahassee, Florida, with more closures expected to be reported in the future.
