There are plans for Family Dollar stores closing in 2019 that will have close to 400 locations shutting down.
This plan will have Dollar Tree (NASDAQ:DLTR), the owner of Family Dollar, closing down a total of 390 stores throughout the year. All of the locations in the Family Dollar stores closing plan are underperforming locations. The number of stores closing may change depending on the company’s ability to negotiate with landlords.
This is part of the company’s efforts to better optimize its stores. It’s more than just Family Dollar stores closing down in 2019. The plans will also have an additional 200 locations not included in the closings shift to Dollar Tree stores.
Dollar Tree will also be making other changes to Family Dollar stores as part of its optimization plans. This will include it renovating a total of 1,000 locations during the year. It is also looking to add adult beverages to 1,000 stores and expand freezer and coolers in 400 stores.
“Since the merger, we have prepaid $4.3 billion dollars of debt, captured significant synergies in both brands, and fully integrated most systems, functions and departments across banners,” Gary Philbin, President and CEO of Dollar Tree, said in a statement. “By July, we will complete the most important phase: unifying our headquarters under one roof in Virginia.”
The news about the Family Dollar stores closing comes alongside the company’s earnings report for the fourth quarter of 2018.
DLTR stock was up 3% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.