Dollar Tree to close around 1,000 Family Dollar stores

Dollar Tree announced on Wednesday that it plans to close nearly 1,000 U.S. stores in its portfolio after suffering a significant quarterly loss. 

As part of its portfolio optimization, initially announced late last year, the company will close 600 of its Family Dollar stores in the first half of 2024. An additional 370 stores will close once their leases expire, the company said in its fourth-quarter earnings report. 

The company incurred a net loss of $1.71 billion, or $7.85 per share, in the quarter.

FAMILY DOLLAR RECALLS ADVIL STORED OUTSIDE OF TEMPERATURE REQUIREMENTS

Dollar Tree will close 600 of its Family Dollar stores in the first half of 2024. (Jin Lee/Bloomberg via Getty Images / Getty Images)

Dollar Tree CEO Rick Dreiling said during an earnings call in December that its Family Dollar stores had softer same-store sales due to unexpected costs from a recall of various over-the-counter drugs and medical devices in nearly two dozen states last fall.

“To this end, we have initiated a comprehensive review of our Family Dollar portfolio to address underperforming stores that are not aligned with our transformative vision for the company,” Dreiling told analysts on the call. 

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This included identifying stores for potential closure, re-bannering or relocation as the company worked to ensure “that each asset under the Family Dollar banner is delivering its full value” for shareholders, Dreiling said.