In an unexpected turn, Dollar Tree has announced a fourth-quarter loss and plans to close nearly 1,000 stores, primarily Family Dollar outlets. The discount retailer, grappling with the aftermath of its acquisition of Family Dollar almost a decade ago, cited a significant devaluation of the acquired chain as a major factor.
With Dollar Tree’s move to close approximately 600 Family Dollar stores in the first half of the year and additional closures planned over the next several years, concerns arise over access to affordable goods for economically vulnerable and low-income communities along with the loss of employment opportunities in those neighborhoods as well.
The impairment charge of $950 million against the Family Dollar trade name and substantial store closure costs further underscore the challenges Dollar Tree faces in integrating the acquired chain successfully.
Reporting for WGRT – Choze Powell
