Dollar Tree announced Wednesday, March 6, it will close up to 390 Family Dollar stores this year and convert another 200 into Dollar Tree locations. Additionally, while trimming Family Dollar stores, it will open 200 others in an updated format, while adding 350 new Dollar Trees.
The merger, after a bidding war, was supposed to revive Family Dollar and give it more heft to better compete with rivals Dollar General and Walmart. Instead, sales at Family Dollar have lagged behind competitors, dragging down performance at Dollar Tree.
Dollar Tree is accelerating plans to close or renovate Family Dollar stores, responding to investor concerns that the merger isn’t paying off. On Wednesday, Dollar Tree stated it plans to close up to 390 Family Dollar stores this year and convert about 200 more to Dollar Tree shops. Executives have previously said Dollar Tree would renovate at least 1,000 Family Dollar stores this year. The company had around 8,200 Family Dollar stores and 7,000 Dollar Tree stores at the end of the latest quarter.
Full Content: Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
