Dollar Tree to Close Over 1,000 Stores as Discount Chains Feel Pressure of Inflation and Changing Consumer Habits

• Dollar Tree plans to close over 1,000 Family Dollar and Dollar Tree locations in 2023 and 2024. This could benefit competitors like Dollar General and Walmart.

• Discount retailers like Dollar General have seen foot traffic rise as inflation drives consumers to cheaper options. But Family Dollar lagged with just a 0.5% increase.

• The closures may be most impactful for consumers in food deserts who depend on Family Dollar for convenient, local shopping.

• Dollar Tree reported disappointing Q4 results with lower revenue and a $1.7 billion net loss. Dollar General beat expectations and forecast strong same-store sales growth.

• Dollar Tree shares are down 8% year-to-date, while Dollar General is up over 10%.