Dollar Tree plans to shutter nearly 1,000 Family Dollar stores as the discount retailer moves to revamp its business by expanding its food aisles and array of merchandise in the $3 to $5 range. The move announced Wednesday comes after the chain missed quarterly sales and profit targets amid heightened competition from such rivals as Dollar General and Temu for discretionary dollars.
It also reflects inflation-weary shoppers’ continued focus on necessities; though consumer prices have cooled significantly since their mid-2022 peak, Americans are still shelling out more for groceries, gasoline and other essentials. The company will close 600 Family Dollar locations in the first half of fiscal 2024. An additional 370 Family Dollar and 30 Dollar Tree stores will not renew their leases