More retailers than ever announced their plans to close stores in 2024. High inflation, consumer behavior changes, and sales challenges are common reasons cited by these companies. Even highly popular brands like Red Lobster, TJ Maxx, and Macy’s have struggled to stay afloat amid these unprecedented changes.
Family Dollar announced in Spring that they would be closing almost 1,000 stores across the country. The company intends to “transform” the organization and unlock its full earning potential by closing underperforming stores.
Why is Family Dollar Closing Stores?
CEO and Chairman Rick Dreiling explained the decision to close some Family Dollar and Dollar Tree locations, “Many of these stores have been underinvested in for years, and the capital investment required to fix them would not deliver an acceptable rate of return.” Additionally, much of Family Dollar’s revenue comes from seasonal items and consumer demand for this merchandise has been lower due to the challenging economy.
The company also suffered major losses as a result of a tornado that hit one of their distribution centers in Marietta, Oklahoma in April of this year. The discount chain lost $70 Million in inventory and an additional $47 Million in property and equipment damage due to this storm.
Family Dollar was also forced to pay a $41 Million fine to the federal government after an inspection revealed a rodent infestation in one of their West Memphis, Arkansas facilities. These losses in conjunction with consumer buying behaviors changing have hurt the business immensely and forced them to close locations as leases expire.
Family Dollar Store Closing List
Dollar Tree acquired Family Dollar in 2015 and there have been hundreds of Family Dollar and Dollar Tree stores closed between 2023 and 2024. Usearch provides a comprehensive list of the locations closing this year and is updated regularly. The most recent Family Dollar stores closing have been all around the state of Ohio. Louisiana also suffered several store closures in the first half of the year.
In the first half of 2024 there were upwards of 600 store closures and there will be around 370 by the end of the year, resulting in nearly 1,000 total stores shutting their doors.
