American retailer Dollar Tree will close about a thousand stores – Kommersant
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Today, March 13, the American chain of fixed price stores Dollar Tree announced about plans to close about a thousand stores – 600 in the first half of the 2024 financial year, another 370 as lease agreements expire. Now the chain has more than 15 thousand stores.
Dollar Tree announced the store closures simultaneously with the release of financial statements for the fourth quarter of fiscal year 2023. The company ended the quarter with a loss of $1.7 billion versus a profit of $450 million a year earlier; revenue rose 12% to $8.6 billion. Dollar Tree shares fell 15% today.
Most of the closing stores operate under the Family Dollar brand, which Dollar Tree bought in 2015. According to many analysts, the deal was unsuccessful. While quarterly sales at Dollar Tree-branded stores rose 6.3%, they fell 1.2% at Family Dollar stores.
Other non-food retailers are also seeing worsening performance as shoppers buy fewer items due to inflation. At the beginning of March, the American retailer Target reported about a 3.7% decline in comparable sales in 2023.
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