Dollar Tree to Close Almost 1,000 Stores After Missing Wall Street Predictions | HNGN [Video]

Dollar Tree announced on Wednesday, Mar. 13, that it would close 970 of its Family Dollar stores in an effort to revamp its business.

According to Reuters, the company made the decision after its shares fell about 8% in premarket trading and missed Wall Street expectations for quarterly sales and profit.

Dollar stores have been struggling to deal with a shift in consumer spending to lower-margin essentials from higher-margin discretionary products like home decor, electronics and toys. They also face stiff competition from bigger rivals like Walmart and the Chinese e-commerce platform Temu.

Dollar Tree said in November that it would be reviewing its Family Dollar business, including potentially shutting down underperforming stores, to return to growth.

In its announcement, the company said it would be closingabout 600 Family Dollar Stores in the first half of 2024 and 370 more over a period of a few years, along with 30 Dollar Tree outlets, either outrightly closing it or allowing their …