Family Dollar to close nearly 1,000 stores

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The genitor institution of Family Dollar said it would adjacent astir 1,000 stores, citing marketplace conditions, shop capacity and different factors.

Dollar Tree, which has owned Family Dollar since 2015, said Wednesday that 600 Family Dollar stores would adjacent successful nan first half of 2024, pinch different 370 locations closing complete nan adjacent respective years.

In addition, 30 Dollar Tree-branded stores will adjacent complete that clip period.

The institution presently oversees a full of 16,774 stores betwixt nan 2 brands.

Shares of Dollar Tree fell arsenic overmuch arsenic 13% successful Wednesday trading arsenic nan institution besides posted financial results that missed analysts' expectations, including a nett nonaccomplishment of much than $1.7 cardinal for nan 4th quarter.

Amid higher costs passim nan economy, consumers person begun shifting to lower-margin equipment compared pinch higher spending connected discretionary items earlier successful nan post-pandemic period. That has challenged dollar stores' profitability. Industry rival Dollar General has besides faced akin issues.

Reuters has besides reported that Chinese e-commerce level Temu has besides begun taking marketplace stock from dollar stores.

Additionally, dollar stores are facing an summation successful theft, referred to arsenic "shrink" successful nan unit industry. Dollar Tree said shrink remains "elevated" and would little nan company's profitability going forward. On nan company's net telephone Wednesday, institution executives said shrink had been accelerating.

Rob Wile

Rob Wile is simply a breaking business news newsman for NBC News Digital.