Dollar Tree to close nearly 1,000 stores

Dollar Tree announced a surprise loss in the fourth quarter, revealing plans to close nearly 1,000 stores as a result. The decision comes as the discount retailer faces challenges integrating the Family Dollar chain, which it acquired in 2015 for over $8 billion. The company plans to shut down about 600 Family Dollar stores in the first half of the year and will close or rebrand an additional 400 stores over the next few years. This move follows a $950 million impairment charge against the Family Dollar trade name and a $1.07 billion goodwill charge, essentially negating profits from the recent holiday season. The closures represent nearly 12% of all Family Dollar stores, highlighting the difficulties Dollar Tree has faced with the acquisition. Despite a 14% tumble in Dollar Tree shares, the company saw an increase in shopper traffic but noted a decrease in average spending. For fiscal 2024, Dollar Tree forecasts earnings between $6.70 and $7.30 per share, with revenue expected to be between $31 billion and $32 billion, slightly below Wall Street’s expectations.

Source: NPR