Dollar Tree Inc. will shutter approximately 600 Family Dollar stores in the first half of its 2024 fiscal year, which began Feb. 4, 2024. The discount retailer also plans to close an additional 370 Family Dollar stores and 30 Dollar Tree locations over the next several years as each store’s current lease expires.
The retailer opened 219 stores during its Q4 for a total of 641 during the full fiscal year. Dollar Tree’s move to close nearly as many stores as it opened the previous year comes after a comprehensive store portfolio optimization review conducted during the retailer’s 2023 Q4. The process involved identifying stores for closure, relocation or re-bannering.
“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,” said Rick Dreiling, Chairman and CEO of Dollar Tree in a statement. “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.”
Dollar Tree’s Q4 and FY results show the challenges the retailer faces with its Family Dollar banner. Same-store sales during Q4 rose 6.3% for the Dollar Tree segment but fell 1.2% at Family Dollar, for an enterprise-wide gain of 3%. For the full year, Family Dollar did show same-store sales growth of 3.2%, but the Dollar Tree stores outpaced them, rising 5.8% for an enterprise-wide increase of 4.6%. The retailer generated $30.6 billion in consolidated net sales for the full year, an 8% improvement over the previous fiscal year.
While Dollar Tree is trimming its store fleet, several other retailers have announced expansion plans over the past few weeks:
- Burlington Stores plans to open 100 stores in 2024;
- Discount grocer Aldi plans to open 800 U.S. stores by 2028;
- Tractor Supply will open more than 90 stores in 2024; and
- Warby Parker plans to open 40 stores this year.
