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Dollar Tree announced March 13 it will close about 600 Family Dollar stores in the first half of Fiscal Year 2024. Additionally, about 370 Family Dollar and 30 Dollar Tree stores will shutter over the next several years at the end of their leases. 

The company revealed the news with its 2023 fourth quarter results. Dollar Tree reiterated plans for “a comprehensive store portfolio optimization review which involved identifying stores for closure, relocation, or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors.” 

A spokesperson for the Chesapeake, Va.-based company did not say which – if any – New Jersey stores would be affected.  

Addressing only the Family Dollar closures in a statement to NJBIZ, the spokesperson emphasized the store portfolio review was performed “to identify and address underperforming stores and invest in improved store standards and growth.” 

“Family Dollar and Dollar Tree stores are important to thousands of communities across this country. We owe it to those we serve to position all of stores for success and meet the expectations of our valued customers and associates,” the spokesperson added.  

As of Feb. 3, 2024, the company operated more than 16,000 Family Dollar and Dollar Tree stores across 48 states and five Canadian provinces, according to its Q4 results. 

‘Positive traffic trends’

“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains, and adjusted margin improvement across both segments,” Chairman and CEO Rick Dreiling said in the report. “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,” Dreiling continued.

According to a report on CNN, “mismanagement and poor conditions in stores” as well as competition from retailers such as Dollar General and Walmart have hurt the Dollar Tree brands. CNN also noted a recent case involving allegations of a rodent infestation at an Arkansas distribution center, whereby Family Dollar Stores LLC, a subsidiary of Dollar Tree Inc., agreed to pay $41.7 million as part of a plea agreement, according to the U.S. Department of Justice. 

For fiscal year 2023, Dollar Tree reported consolidated net sales of $30.6 billion, an increase of 8% year over year. Gross profit increased 4.3% to $9.31 billion.  

As part of its store portfolio review, the company incurred $594.4 million in charges in the fourth quarter of 2023. Additionally, it incurred a goodwill impairment charge of $1.07 billion and a trade name intangible asset impairment charge of $950 million. 

In case you missed it:

In January, Sears announced its last remaining store in New Jersey would close for good. Click here to read the story.