Dollar Tree to close nearly 1,000 stores, posts surprise fourth quarter loss

[Omaha Steve]

Source: AP

By MICHELLE CHAPMAN
Updated 8:13 AM CDT, March 13, 2024

Dollar Tree will close nearly 1,000 stores and swung to a surprise fourth quarter loss as the discount retailer took a related $1.07 billion goodwill impairment charge.

Shares tumbled 15% before the opening bell Wednesday.

Dollar Tree plans to close about 600 Family Dollar stores in the first half of this year and 370 Family Dollar and 30 Dollar Tree stores over the next several years.

Dollar Tree acquired Family Dollar for more than $8 billion almost a decade ago after a bidding war with rival Dollar General, but it has had difficulty absorbing the chain.



Read more: https://apnews.com/article/dollar-tree-discount-inflation-16f0d9b7e2d41d95ee6e6402d96169d0

[bucolic_frolic]

1. At $1.25 they took the value out of many products

The few remodelings I've seen resulted in fewer products, a more standardized product mix, stockouts of popular items, shrinkflation. I can find little reason to go there anymore. Locally the employees have nothing to do at times and trash Biden between themselves all the time. Political talk of any kind on the job is poor presentation to the public. They alienate about half of customers.

[jmbar2]

2. I've seen posts on Reddit about employees walking out of stores.

Quitting as a group because of poor wages, hours, and management. In my own town, they can't keep personnel.

[Jacson6]

5. Yeah, They opened one in our small town.

I go there once a great while, but they only have one staff member that is doing stocking and if you need to buy something you have to ring a bell to get the clerk to come service you. I don't know why they built one here.

[AltairIV]

3. Question.

Are they the ones with vermin infested warehouses and the recently lead contaminated cinnamon?

[marble falls]

4. That cinnemon was distributed all over, not just the dollar stores.

[Jacson6]

6. What do you expect for $1.25? n/t

[riversedge]

11. I love dollar tree reading glasses -buy them all the time there. I only need them

for reading but I have a habit of just putting them down anywhere and the cat plays them--then they get scratched!!!

[Miguelito Loveless]

24. That was Dollar General

[melm00se]

7. Grew too much, too fast.

The oversaturated a lot of their markets. There are 5 buck type stores within a 3 mile or so circle from my home.

That and the Family Dollar acquisition that didn't go to plan so they had to take a hit on the balance sheet to account for that.

I use them when I buy cookie/holiday tins for packaging.

$1 or $1.25 tins when you have to pay double or more from any other supplier really hits my bottom line.

[wolfie001]

8. I've seen some footage on YouTube and TT about horrific working conditions

Awful. Don't wanna pay a fair wage, crap benefits. One video I saw a customer stocking milk so it wouldn't go bad. Dystopia.

[durablend]

9. Some of you clearly didn't read the blurb

The majority of locations to be shuttered will be Family Dollar stores, not Dollar Tree locations.

[LeftInTX]

16. I know...LOL

I will continue to enjoy my giant pack of twizzlers for $1.25 from my local DT (Yeah..I'm bad, but they cost $6 elsewhere)

[diva77]

28. This is how people get duped into signing up for Medicare Advantage -- they think they're getting Medicare.

Two distinctly different systems. Medicare is GOVERNMENT funded insurance that does not deny care for pre-existing conditions and has a 2% administrative overhead, while Medicare Advantage (Disadvantage) is PRIVATE insurance that can deny care for pre-existing conditions and has something like a 17% overhead.

Now back to the Dollar Tree/ Family Dollar Tree thread...

[JI7]

10. Looks like it's mostly the Family Dollar Stores it's closing

[LeftInTX]

17. Dollar General bought a closed CVS a year ago. It has not yet opened. Place still sits vacant with a FD sign on it.

Never opened or stocked.

(Sorry, I'm getting my Dollar stores all mixed up...) I know DG and FD are not "dollar" stores, but modern 5 and 10...

[Marthe48]

12. Trying to increase shareholders' returns

by jacking up the price of their products didn't help. Adding price point products didn't help. I bet many people were angry at the checkout when they learned that an item was not $1 or $1.25, but $5, $10 or more. I bought a lot of household supplies at the local Dollar Tree, and stopped shopping there as often after they changed prices. The owner promised to return sizes we wanted, but that hasn't happened. Many of the products are unusable. I won't ever buy bandaids or tape there and I returned the last box of bandaids, because the one I used fell off as soon as I put it on. There is a Dollar General closer to my house, and I can get a lot of the items I used to get at Dollar Tree for $1, same size and brand.

We have a Big Lots, Ollie's and Harbor Freight in our town now, along with Family Dollar, Dollar General and Dollar Tree, plus numerous thrift stores. Not to mention online sites. Anyone who bargain shops is going to buy the product at the lowest price they can find.

If Dollar Tree needs a 35% return to investors, and can't survive with its previous return of 30%, that is pure greed and they deserve to fail.

[LeftInTX]

18. They're closing Family Dollar stores, not Dollar Tree. It's confusing.

I didn't know Dollar Tree owned Family Dollar. I knew Dollar General owned Dollar Tree...oh well...

[Marthe48]

21. They are closing some Dollar Tree stores

But mostly Family Dollar stores. CBS radio news had a story today, too. Sounds like another venture capitalist raid if I think about it. :/

[wishstar]

25. Dollar General doesn't own Dollar Tree. DG tried to buy Family Dollar but DT bought Family Dollar

Dollar Gen and Dollar Tree are rivals.

Since Dollar Tree increased to $1.25 or higher, I've started going to Dollar Gen for their $1 bargains. I can find several items that I used to buy for a buck at DT that are still $1 or even less at several other stores including Aldi and Grocery Outlet and Ingles Grocery and sometimes even Harris Teeter.

[Puppyjive]

13. They need to change their business plan

Offer fresh produce. They are located in areas that don't have grocery stores. We need stores to lower their profit margins and work for the communities that desperately need access to good food and affordable food. They could fill the niche.

[enid602]

27. .99

Do you have .99 Cents stores there. They feature produce and day old bread, mostly Orowheat and Sarah Lee. $1.49 per loaf, which is great for Orowheat.

[SWBTATTReg]

14. I quit going there because I felt that they were taking advantage of their employees (usually only one person or maybe

two working). And their prices started creeping upwards several years back, so the savings I would get for the few items I buy there weren't worth the effort to go there.

[NickB79]

15. Aldi blows both of them away for groceries and toiletries

I only hit Dollar Tree and Family Dollar when it's an emergency (Aldi is 15 miles away vs 6 miles for Dollar Tree). But Aldi is next to the YMCA, so I'm usually there twice a week.

[iluvtennis]

19. I still love Dollar ($1.25) Tree. It's fantastic for household cleaning supplies. I do wish they'd

treat their employees better.

[LeftInTX]

20. I bought a rubber broom and handle for $1.25 each. ($2.50) It's a great little broom for hair and fine dust.

[iluvtennis]

22. We have the same for cleaning up the litter the cats leave on floor when getting out of thier litter box.

[AverageOldGuy]

23. Dollar General/Dollar Tree just built . . .

. . . THREE new stores, ONE refurbished an existing store in my rural Virginia county.

1. Built a new store near one major crossroads.

2. Built another new store 6 miles up the road from new store in #1 above.

3. Temporarily closed one store in another section of the county, doubled the size, re-opened.

4. In west end of the county they bought a building that previously housed a big , old mom-and-pop grocery store. Cleaned it up, painted, opened a combination Dollar General and Dollar Tree.

[rogerballard]

26. DGX opened a concept store in downtown Grand Rapids

Many thought it wouldn't last. When I worked in downtown GR I went there from time to time. They have a little bit of everything, very clean and normally well stocked. I knew they would make it with all the new offices and hotel businesses going in.

http://dgxstore.com/pages/index.aspx