Dollar Tree shares plummeted over 14% today after the retailer announced plans to close about 970 Family Dollar stores and 30 Dollar Tree locations over the next several years.
Why it matters: The closures represent a reversal of the retailer's rapid expansion — which included buying Family Dollar in 2015 — and the following scrutiny over product safety issues in recent years, write Nathan and Axios' Kelly Tyko.
Zoom out: Low-income shoppers, which Family Dollar caters to, have been pulling back on spending, per WSJ, Hope notes.
Family Dollar has lost ground to competitor Dollar General, whose prices are about 10%–15% lower, CNN notes.
Dollar Tree today also reported holiday sales and profits, and 2024 projections that missed investor expectations.