Family Dollar to close about 1,000 locations in 2024. There are 19 stores in Fayetteville

Discount retail store chain Dollar Tree announced it would close about 1,000 Family Dollar stores in the first half of 2024’s fiscal year, the company said on Wednesday.

In 2015, Dollar Tree acquired Family Dollar to create North America’s leading discount retailer, according to a press release from 2014 by the company.

The chain announced that another 370 Family Dollar and 30 Dollar Tree stores would close as leases expire throughout the year. Although the company opened 219 new stores in the fourth quarter of 2023, which brought the total number of full-year new store openings to 641, a review of its stores performances showed unexpected results, according to the press release by the company.  

“As an organization, we continue to execute at a high level. Our core operating performance was strong in the fourth quarter, despite some unanticipated developments related to general liability claims,” said Jeff Davis, Chief Financial Officer for Dollar Tree Inc.

Dollar Tree underwent this review during the fourth quarter of 2023 to identify locations to close, relocate or re-banner, the company said.

“As we look forward in 2024, we are ... taking decisive action to improve profitability and unlock value at Family Dollar,” said Rick Dreiling, the chain’s chairman and chief executive officer in a news release announcing the fiscal results and closures.

This decision is a result of the chain struggling to compete against big name stores like Dollar General and Walmart, with Dreiling citing inflation and reduced government benefits have added to the affect this has all had on its customer base, according to a report from CNN.

Family Dollar locations in Fayetteville

The company did not announce which stores would close but said “underperforming stores” would be targeted. There are 19 Family Dollar stores and seven Dollar Trees in Fayetteville, according to each store’s website.

Reporter Lizmary Evans covers growth and development for The Fayetteville Observer. You can reach her at LEvans@gannett.com