Discount retailer Dollar Tree, the parent company of Family Dollar, announced it will close nearly 1,000 stores across the country.
“We plan to close approximately 600 Family Dollar stores in the first half of fiscal 2024,” Dollar Tree said in a fourth-quarter 2023 earnings report. “Additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close in next few years at the end of each store’s current lease term.”
The chain did not disclose which stores would close, but noted that the company made its decision after evaluating its portfolio for underperforming locations.
Related: Dollar Tree adopts plans to combat store theft, profit declines
Family Dollar was acquired by Dollar Tree in 2015 in a deal estimated at $8.5 billion.
The news comes after controversy for Family Dollar, which last month paid $41.6 million in a plea deal with the FDA after the chain was found to have been storing cosmetics, drugs and medical devices unsafely for years .
The company also settled for $1.35 million last summer after a class-action lawsuit over workers’ complaints about unsafe working conditions in stores.
In a fourth-quarter 2023 earnings report, the company reported that its Dollar Tree-branded chains saw a 6.3% increase in same-store net sales, while Family Dollar stores saw a decline of 1.2% in the same area.
“We ended the year strong, with fourth-quarter results reflecting positive traffic trends, market share gains and improved adjusted margin in both segments,” said Rick Dreiling, president and CEO of Dollar Tree, in a statement. “While we are still in the early stages of our transformation journey, I am proud of what our team has accomplished in 2023 and see a long road of growth ahead of us.”
The Dollar Tree was down just under 11% year-over-year Thursday afternoon.