Dollar Tree to close around 1,000 Family Dollar stores

Dollar Tree announced on Wednesday that it plans to close nearly 1,000 U.S. stores in its portfolio after suffering a significant quarterly loss. 

As part of its portfolio optimization, initially announced late last year, the company will close 600 of its Family Dollar stores in the first half of 2024. An additional 370 Family Dollar stores and 30 Dollar Tree stores will close over the next several years once their leases expire, the company said in its fourth-quarter earnings report. 

The company incurred $594.4 million in charges in connection with the store portfolio review.

Dollar Tree CEO Rick Dreiling said during an earnings call in December that its Family Dollar stores had softer same-store sales due to unexpected costs from a recall of various over-the-counter drugs and medical devices in nearly two dozen states last fall.