Discount retail chain Family Dollar, owned by Dollar Tree, announced it will close over 1000 stores in the next few years due to economic pressures.
Family Dollar will shutter 600 locations in 2024 and 370 more as leases expire, with over 8000 total US stores.
CEO Rick Dreiling cited “persistent inflation and reduced government benefits” hurting lower-income customers.
“Persistent inflation and reduced government benefits continue to pressure the lower-income consumers that comprise a sizable portion of Family Dollar’s customer base,” CEO Rick Dreiling said.
Dollar Tree also said it will close 30 stores. The closures come as inflation cuts into profits and competitors like Walmart gain ground.
Family Dollar has also suffered from SNAP benefit reductions and past mismanagement at Dollar Tree, including a $40 million rat infestation fine.
While discount retailers had done well after 2008, Family Dollar missed out and was purchased by Dollar Tree in 2015.
Dollar Tree shares sank over 13% on the store closure news.
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