Family Dollar announced Wednesday that it will close nearly 1,000 stores starting this year. Family Dollar, which is owned by Dollar Tree, will reportedly close 600 locations this year, and additional stores will close when their leases expire.
Dollar Tree, with its headquarters in Chesapeake, announced last year it would review all Family Dollar stores to identify underperforming locations. The company operates more than 16,000 stores.
“As a result of this review, we plan on closing approximately 600 Family Dollar stores in the first half of fiscal 2024,” stated a news release posted online. “Additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each store’s current lease term.”
Dollar Tree bought Family Dollar for $8.5 billion in 2015.
Dollar Tree Chairman and Chief Executive Officer Rick Dreiling said that they expect favorable freight rates going forward. Reduced SNAP benefits for low-income families was given as a possible reason for lackluster sales.
Family Dollar has multiple competitors including Dollar General, Walmart, Target, Amazon and Temu.
The list of locations that will close has not been released.
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Crystal Graham
