Dollar Tree plans to close 1,000 stores—600 in 2024, and another 370 in the years ahead—as the discount retailer reported brutal quarterly earnings.
The discount chain hinted at the end of last year it may close underperforming stores.
Dollar Tree, which owns Family Dollar, plans to close about 600 Family Dollar stores in the first half of fiscal 2024, the company said in a statement Wednesday.
In addition, the company will close 370 Family Dollar stores and 30 Dollar Tree stores when their leases expire over the next several years, Dollar Tree said.
The Dollar Tree reported $1.71 billion, or $7.85 a share, in losses in its fourth quarter, one year after it reported a profit of $452.2 million.
Shares of Dollar Tree were down 12.5% Wednesday morning.
16,774. That’s how many stores the discount chain operates across the U.S. and Canada as of February 3, the company said.
In 2015, Dollar Tree purchased Family Dollar for $8.5 billion with the hopes of extending its “reach to low-income customers” while “strengthening and diversifying [its]
In August, the U.S. Occupational Safety and Health Administration ordered Dollar Tree and Family Dollar to pay a $1.35 million fine and assess hazards at their stores nationwide after workers complained of a number of safety concerns. Just last month, the Justice Department imposed a $41.7 million fine against Family Dollar after the company pleaded guilty to holding cosmetics, drugs, food and other items in “insanitary” conditions at an Arkansas distribution center that was infested with rodents.