Dollar Tree to shutter nearly 1,000 stores after dismal earnings report

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Ten years after acquiring Family Dollar, discount chain continues to struggle amid growing competition from Aldi, Dollar General and Walmart.

Dollar Tree on Wednesday said it plans to close nearly 1,000 stores over the next several years, after disclosing significant losses in its latest earnings report.The discount store chain lost $1.7 billion in the fourth quarter, down sharply from earnings of $452.2 million a year ago. Revenue climbed to $8.6 billion, from $7.7 billion, but fell slightly short of Wall Street forecasts.

Dollar Tree acquired Family Dollar for more than $8 billion almost a decade ago after a bidding war with rival Dollar General, but it has had difficulty absorbing the chain. 'This dramatic cull is the coup de grâce in the rather botched acquisition of the Family Dollar chain, which has caused Dollar Tree nothing but hassle since it was completed back in 2015,' Neil Saunders, managing director of GlobalData, said in a note.

 

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