Dollar Tree to close nearly 1,000 Family Dollar stores
Dollar Tree has announced that it will shutter nearly 1,000 Family Dollar stores due to underperformance issues.
Dollar Tree is yet again not sticking to the dollar theme in its name.
The company announced last month that it would be increasing the prices on items again. The official prices announced were a minimum of $1.50. This is the largest increase Dollar Tree has done to date.
There is no timeline for when the new, more expensive items will appear in stores, only that they are accelerating the rollout of additional price tiers.
Here is what we know about the price increase.
How much is Dollar Tree increasing?
Officially, the store will increase from a $1.25 minimum to a $1.50 minimum. The maximum will also increase from $5 to $7.
“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” Dollar Tree CEO Rick Dreiling said in the fourth quarter earnings call on March 13.
What to know: Are Dollar Tree, Family Dollar stores closing in Tennessee?
As of April 17, there are 25 Dollar Tree stores in Memphis. All stores have seen a price increase to include the $3 and $5 items, and they could soon see up to $7 items as well.
When was the last Dollar Tree price increase?
In 2021, Dollar Tree announced it would expand merchandise to include $3 and $5 items. This was a part of the “Dollar Tree Plus” plan that expected to have 2,000 stores open by the end of 2022.
When did Dollar Tree stop being just $1?
Avid Dollar Tree shoppers can remember the good ole days when everything inside the store sold for just a single dollar. Sadly, that hasn’t been the case since 2019 when the company introduced items priced at $1.25. In 2021, $1.25 was made the base price for the store.
Is Dollar Tree closing stores in Memphis?
In the fourth quarter reports for Dollar Tree’s 2023 fiscal year, the company announced it would close approximately 600 Family Dollar Stores in the first half of fiscal year 2024. These closures would be followed by about another 370 in the coming months.
Despite the, there has been no announcement of specific Dollar Tree or Family Dollar stores announcement closing in Memphis yet.
