Dollar Tree Inc., the parent company of over 16,700 stores, announced plans to close 600 Family Dollar locations within the next year, which represents about 12% of the chain. An additional 400 stores, encompassing 370 Family Dollars and 30 Dollar Trees, are slated for closure in the forthcoming years.
The move comes amidst ongoing struggles since Dollar Tree’s $8 billion acquisition of Family Dollar in 2015, a deal intended to outmaneuver competitor Dollar General. However, the acquisition revealed deep-seated issues within Family Dollar, as the new parent company discovered the chain’s stores were in dire condition.
Efforts to revitalize Family Dollar over the past nine years have faced significant hurdles. This wave of closures marks a critical juncture for Dollar Tree Inc. as it navigates these persistent issues while striving to maintain its foothold in the competitive discount retail market.