Family Dollar and Dollar Tree to close 1,000 stores after $1.71 billion net loss
The company opened 641 new stores last year, but it is closing 1,000 stores.
By Madeleine Hubbard
Published: March 13, 2024 10:45am
Updated: March 13, 2024 10:49am
Dollar Tree and its subsidiary, Family Dollar, will close 1,000 stores following a net loss of $1.71 billion over three months, the discount retailer said Wednesday.
The company plans to close about 600 Family Dollar stores in the first half of this year and allow about 370 Family Dollar stores and 30 Dollar Tree stores to close over the next few years at the end of their lease terms.
The company opened 641 new stores, including 333 Dollar Trees and 308 Family Dollars, last fiscal year, which ended on Feb. 3, 2024.
However, during the fourth quarter of fiscal 2023, the company saw $1.71 billion in losses.
The company also said that it suffered a decline in gross profit margins, which was "driven by elevated shrink, product cost inflation, unfavorable sales mix, and higher distribution and markdown costs," and partially offset by factors such as lower freight costs.
"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," company CEO Jeff Davis said.
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