Mar 13, 2024 - Business
Charted: Investors fall out of Dollar Tree
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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.
