Dollar Tree announced that it is closing 600 of its Family Dollar store locations in 2024.
On top of that, the discount retailer also plans to close an additional 370 Family Dollar stores, plus 30 Dollar Tree locations over the next few years, at the end of their leases. In total, the planned closures represent about 15% of its Family Dollar locations.
The retailer's family of brands has struggled as inflation impacts its low-income shoppers' wallets. More customers are shopping around and comparing prices at competing retailers to ensure they are getting the best deal, while more incidences of shoplifting are also hurting its bottom line, the retailer has said.
The closures could hit some communities hard, according to Dominick Miserandino of RetailWire.
"They might be the only store that serves the entire community in this area," Miserandino told CBS News. "They might have been one of the few jobs in the community."
He added, "These communities are dependent on these stores."
Dollar Tree, which acquired Family Dollar for more than $8 billion nearly a decade ago, has not released a comprehensive list of the locations it is closing.
In an email to CBS MoneyWatch, the company said it decided to close the 600 Family Dollar locations this year after a "comprehensive review of our store portfolio to identify and address underperforming stores and invest in improved store standards and growth." It didn't provide a list of locations that are slated for closure.
Mississippi seems the hardest hit.....I guess their EBT business model did not work out as planned.
The various flavors of "Dollar stores" have replaced the Mom & Pop stores in a lot of places.
