In its fourth quarter financial report for 2023, Dollar Tree announced it will shutter 600 Family Dollar stores during the first half of this fiscal year, as well close an additional 370 Family Dollar and 30 Dollar Tree locations as their leases expire over the next several years.
The decision was made based on the results of its store portfolio optimization review, which was announced during the fourth quarter of 2023. The study identified stores for “closure, relocation or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors.”
“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains and adjusted margin improvement across both segments,” said Rick Dreiling, chairman and CEO.
“While we are still in the early stages of our transformation journey, I am proud of what our team accomplished in 2023 and see a long runway of growth ahead of us. As we look forward in 2024, we are accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.”
CFO Jeff Davis added, “As an organization, we continue to execute at a high level. Our core operating performance was strong in the fourth quarter, despite some unanticipated developments related to general liability claims.”
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