Headline Roundup • March 13th, 2024
Dollar Tree, Family Dollar Plan to Close Nearly 1,000 US Stores
Summary from the AllSides News Team
On Wednesday, Dollar Tree and Family Dollar announced plans to close 970 U.S. stores.
Key Details: Dollar Tree, which operates about 16,774 stores, plans to close about 600 Family Dollar stores this year, and 370 over the next few years. Thirty Dollar Tree stores are also expected to close as their leases expire.
Key Quote: “Persistent inflation and reduced government benefits continue to pressure the lower-income consumers that comprise a sizable portion of Family Dollar’s” customer base," said Dollar Tree CEO Rick Dreiling on a call with analysts.
For Context: Dollar stores face stiff competition from competitors such as Walmart and Chinese e-commerce platform Temu. The stores have also experienced losses due to consumers spending shifting to essential items rather than more expensive discretionary goods.
How the Media Covered It: CNN Business (Lean Left bias) said the announcement followed "years of mismanagement and poor conditions" at the stores. The Wall Street Journal (Center) highlighted how "Dollar Tree’s earnings in the holiday quarter were wiped out by billions of dollars in charges tied to a review of the company’s portfolio of stores." A headline on the Fox Business (Lean Right) homepage said the brands were "forced" to close the stores amid an "inflation crunch."
Why the Difference? The political right is more likely to connect high inflation with general economic issues than the political left is.
Featured Coverage of this Story
BRANDON BELL/GETTY IMAGES
Dollar Tree's earnings in the holiday quarter were wiped out by billions of dollars in charges tied to a review of the company’s portfolio of stores, and the company plans to close about 1,000 stores over the next few years.
The dollar-store operator reported a loss of $1.71 billion, or $7.85 a share, for the three months ended Feb. 3, compared with a profit of $452.2 million, or $2.04 a share, a year earlier.
Stripping out more than $2 billion of charges tied to the portfolio review, earnings were $2.55...
Jin Lee/Bloomberg via Getty Images
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 will close 600 of its Family Dollar stores in the first half of 2024. (Jin Lee/Bloomberg via Getty...
Ross Taylor/AP
Family Dollar, the struggling discount chain that caters to low-income customers predominantly in cities, will close about 1,000 stores.
Family Dollar will close 600 locations this year and 370 stores over the next several years as store leases expire. Family Dollar has around 8,000 US stores.
Dollar Tree, which owns Family Dollar, also said it will close 30 stores as leases expire.
Years of mismanagement and poor conditions in stores have hurt Family Dollar’s brand. The company has struggled as discount competitors such as Dollar General, Walmart and others grew....
