Dollar Tree and Family Dollar Announce Closure of Nearly 1,000 Stores Nationwide
The decision comes as the companies grapple with declining sales and foot traffic, prompting a strategic shift in their store portfolios.
A recent press release from the company revealed plans to close approximately 600 Family Dollar stores in the first half of fiscal 2024. Additionally, around 370 Family Dollar and 30 Dollar Tree stores will be closed over the next several years as their leases expire.
Texas, a key market for Dollar Tree, is home to 709 Dollar Tree stores, accounting for nearly 10% of the company’s total store count. Major cities in Texas, including San Antonio, Houston, and El Paso, boast a significant number of Dollar Tree locations, with each city ranking in the top 10 for most Dollar Trees nationwide.
The decision to close stores is part of Dollar Tree’s efforts to optimize its store portfolio and maximize profitability.
The company conducted a comprehensive review, identifying underperforming stores that do not align with market needs. The review also highlighted a $7.85 loss per share in the last year, prompting the company to consider raising prices in 2024.
As of now, Dollar Tree has not indicated which specific cities, states, or regions will be most affected by the closures. The company’s focus remains on adapting to market demands and improving financial performance.
For more information, Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. He can be reached at Bsalgado@gannett.com
