(ThePennyWatcher.com) – Dollar Tree has announced plans to shut down close to one thousand stores during the 2924 year and beyond.
The company currently operates around 18,000 stores, and the plans are part of a plan to return the organization to growth according to their CEO Rick Dreiling.
The stock has also taken a hard dive, with the price decreasing almost 15% according to news outlets covering the story closely.
The CEO also said that persistent inflation and reduced government benefits were a major part that pressured lower-income consumers, and they are a huge part of the overall customer base.
In addition to that, there has been years of mismanagement and apparently poor conditions in stores have hurt the overall brand.
Family Dollar is owned by Dollar Tree, and they were recently fined more than $40 million for a rat infestation that also caused many stores to close.
Other factors include the SNAP program which went through some changes that ultimately lead to lower income families having around $250 less in their monthly paycheck, so in turn these customers buying power was reduced at these type of discount stores.
It has been a struggle for a variety of reasons including staffing and integrating the Family Dollar brand in general, so this is mix up that needs to happen according to stakeholders.
