Why Dollar Tree is Closing Family Dollar Stores: The Inside Scoop

2024-04-12 06:54:49

If 600 Family Dollar stores were closed in 2023, 2024 does not have better news for the company. Dollar Tree, the owner of the brand, announced the closure of another 1,000 stores in the United States, and the address of some of the branches that will soon no longer open their doors has since been leaked. Faced with this gloomy scenario, many customers are wondering why the chain of low-priced products stores made this radical decision and after a few days, at least one of the reasons has become known.

Dollar Tree has gone through critical moments at an organizational level, which has not left it unscathed by its regular customers, who have even threatened to go shopping at Walmart with so many changes.

The company has also noted that it will increase prices on products that were previously worth $1.25, as it did before. What has happened with Family Dollar is one of the many changes it has had in recent months.

Despite this, Dollar Tree and its subsidiary Family Dollar remain key options for buyers in the United States and, therefore, the reason behind the closure of hundreds of Family Dollar stores has been reported. Budget problems? We tell you what happened.

WHY DOLLAR TREE CLOSED FAMILY DOLLAR STORES?

Dollar Tree decided to close hundreds of Family Dollar stores mainly due to constant thefts in the establishments and the limited staff to deal with the losses that, combined with other factors, have reached $1.71 million in 2023. according to the La Grada report.

“We always found empty boxes in the store. The thieves came out through the back doors,” a Family Dollar worker told the aforementioned media outlet, about the situation with the store closures.

In Memphis alone, the Police Department recorded a dozen reports of robberies at a Family Dollar store that ended up closing its doors, according to information from La Grada.

The products at Dollar Tree are usually cheap and of ideal quality to save more in the United States (Photo: AFP)

WHAT HAS DOLLAR TREE SAY ABOUT THE CLOSING OF FAMILY DOLLAR STORES?

Dollar Tree has not communicated the direct cause of the closure of the Family Dollar stores, in addition to the figures that have not been in line with expectations from the merger of the companies in 2015.

John Rossi, director of the Professional Sales Center at Youngstown State University’s Williamson College of Business, analyzed one of the reasons why Family Dollar failed to catch on with consumers.

“Dollar Tree and Family Dollar serve two different markets based on their merchandise. A big part of the problem with Family Dollar was that its marketing and assortment selection didn’t match what consumers expected to see. Their pricing model with inflation has to go to three or five dollars, which had a certain impact on demand,” he told CBS.

LEARN MORE ABOUT DOLLAR TREE

WHAT CAN YOU FIND AT DOLLAR TREE?

At Dollar Tree, you can find a wide variety of products at low prices, all for a dollar or less. Some of the items you can find at Dollar Tree include:

• Household items: Cleaning products, kitchen utensils, disposable tableware, organizers, home decorations, and more.
• Personal care products: Personal hygiene items such as shampoo, conditioner, soap, toothbrushes, toothpaste, beauty products, and more.
• Food and treats
• Office supplies
• Toys and games
• Season products

If you liked this note from Dollar Tree, we leave you more information about the United States:

1712906399
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