Family Dollar has been a staple of small towns and cities since the 1960s, but since a 2015 merger with Dollar Tree, the retail chain is struggling. Any consumers who’ve dared to enter a store in the last 5 years are familiar with the chaos and disrepair that mars many of the retailer’s locations.
Stores are left unmanned and floors are so overburdened with merchandise that customers have even helped employees stock shelves. That’s not to mention the whopping $40 million dollar fine the company received for a massive rat infestation. With mismanagement and abysmal conditions abound, it’s honestly surprising that parent company Dollar Tree Inc. is only closing a fraction of its stores nationwide.
How many Dollar Tree locations are closing?
600 Dollar Tree stores will close in 2024, but the retail giant is set to close 300 more over the next few years. In addition to the locations closed outright, the chain will let up to 30 close as leases lapse.
Dollar Tree Inc. purchased Family Dollar in 2015. By reducing costs and combining their consumer bases, the company hoped to compete with bigger retailers like Dollar General and Walmart. But the companies haven’t integrated well; In fact, Dollar Tree has closed hundreds of stores in recent years.
Poor maintenance proved to be much worse than anticipated. Family Dollar Inc. has renovated hundreds of stores since the merger, but many are still in disrepair. With minimal staff, stores are unclean and poorly stocked. The company has had to ramp up anti-theft protocols to help curb what it describes as a “rampant issue.”
Employees and consumers have taken to social media to showcase abysmal working conditions, faulty machines, and revolting store “maintenance.”.Beyond terrible conditions, the company points to the recent rollback of SNAP benefits as a major factor in the decision.
CEO Rick Dreiling notes that “persistent inflation and reduced government benefits,” have squeezed our lower-income Americans, who “comprise a sizable portion of Family Dollar’s ‘customer base.’”
As of March, the extra $90-250 bump is effectively over, and that, according to Dreiling, is the real problem.
