The retail decline continues, as more companies are following in the footsteps of name-brand stores like Gap, Victoria’s Secret and Payless ShoeSource as they prepare for the financial year ahead.
Dollar Tree Inc. announced on Wednesday that it will be shuttering up to 390 Family Dollar stores in 2019, an increase of 520 percent from their typical close rate of 75 stores per year.
The announcement follows the latest round of closures: The discount store chain closed 84 Family Dollar stores — 37 more stores than originally projected — during the final quarter of 2018 alone.
The budget chain does plan to open 200 Family Dollar stores this year and rebrand about 200 Family Dollar stores as Dollar Tree stores. At least 1,000 stores will undergo renovations, with changes such as increased freezers and coolers for adult beverages.
The news comes amid the latest report from the discount chain retailer, revealing the company had a net loss of $2.31 billion at the end of the fourth quarter.
Family Dollar is known for its budget-friendly prices on household goods, food products and beverages, with many items available for under $10. Dollar Tree focuses on more $1 products in the United States and $1.25 products in Canada.
President and CEO Gary Philbin said in a press release, “We are confident we are taking the appropriate steps to reposition our Family Dollar brand for increasing profitability as business initiatives gain traction in the back half of fiscal (year) 2019.”
Dollar Tree Inc. acquired Family Dollar Stores Inc. in July 2015 and operates Dollar Tree, Family Dollar, and Dollar Tree Canada in 48 states and five Canadian provinces. The company is based in Chesapeake, Virginia, and plans to finalize the unification of both brands in the same headquarters by July.