CHESAPEAKE, Virginia — Dollar Tree, Inc., the parent company of Family Dollar and Dollar Tree, has announced plans to close nearly 1,000 stores across the country. The company cites ongoing financial struggles and legal pressures as the primary reasons for the closures.
According to the company’s announcement, 600 Family Dollar stores are set to close during the first half of fiscal 2024, with an additional 370 stores slated for closure in the following years. Dollar Tree will also be shutting down 30 of its stores.
The company has been grappling with profitability issues over the past year. These financial challenges have been compounded by increasing scrutiny from state attorney generals over alleged pricing discrepancies.
In December 2022, Ohio Attorney General Dave Yost filed a lawsuit against Family Dollar. In a press release, Yost stated, “Everything we buy these days costs more – Ohioans can ill-afford businesses that draw people in with the promise of low prices only to deceive them at the checkout counter.”
The closures represent a significant shift for Dollar Tree, Inc., which has long been a staple in the discount retail sector. The locations scheduled to close have not been publicly released.