Is Dollar Tree Closing All Its Stores in 2024? – What’s the Latest?

Wondering about Dollar Tree? Let’s see if it’s closing down. There’s talk about some stores closing, so let’s find out what’s really going on. Today, we’ll explore questions about why Dollar Tree might be closing and what’s behind the rumours. We want to give you the facts, so stick around.

In 2023, things were tough for dollar stores. Family Dollar closed 100 stores, Dollar General closed 74, and Dollar Tree, which owns Family Dollar, closed 59. But here’s the thing: despite these closures, dollar stores are still growing in the United States. They planned to open 1,600 new stores in 2023, which is a lot.

Now, people are talking about Dollar Tree going out of business. If that’s true, why is it happening? Why are some Dollar General stores closing?

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Dollar Tree Overview

Dollar Tree, a major chain of discount stores in the United States, traces its roots back to 1953 when K. R. Perry opened a Ben Franklin variety store in Norfolk, Virginia, which later became known as K&K 5&10. 

In 1970, K. R. Perry, along with Doug Perry and Macon Brock, initiated K&K Toys, a concept that expanded to over 130 stores on the East Coast. The journey continued in 1986 when Doug Perry, Macon Brock, and Ray Compton established a new chain store called Only $1.00 with five stores, primarily in enclosed malls, alongside the existing K&K Toys stores.

The defining moment for Dollar Tree came on April 27, 1989, with the opening of the first “Dollar Tree”-branded store at the Jessamine Mall in Sumter, South Carolina. This marked the beginning of a transformative period for the company. In 1991, Dollar Tree decided to focus exclusively on expanding its dollar store concept after selling K&K stores to K.B. Toys.

Throughout the 1990s, Dollar Tree underwent crucial changes, including the name change from Only $1.00 to Dollar Tree Stores in 1993. The company went public on the NASDAQ exchange on March 6, 1995, with an initial public offering price of $15 a share and a market cap of $225 million.

Over the years, Dollar Tree made strategic acquisitions to augment its reach. In 1996, it acquired Dollar Bill$, Inc., and in 2000, Dollar Express, a Philadelphia-based company. The expansion continued with the acquisition of 98-Cent Clearance Centers in California in 1998 and the purchase of Only $One stores based in New York in 1999.

Dollar Tree celebrated its 20th year in 2006, opening its 3,000th store and acquiring 138 DEAL$ stores from SUPERVALU INC. In 2008, it earned a place in the Fortune 500. The company’s growth persisted, and by 2010, Dollar Tree opened its 4,000th store and ventured beyond the U.S. with the acquisition of 86 Canadian Dollar Giant stores.

Throughout its history, Dollar Tree has navigated challenges, adapted to evolving retail landscapes, and maintained a distinct business model of offering a variety of products at the fixed price point of $1. Today, with over 15,000 stores in the U.S. and Canada, Dollar Tree remains a prominent player in the discount retail sector.

Is The Dollar Tree Going Out Of Business? 

As we all know, many Dollar Tree articles related to their shutting down have been uploaded on the internet. 

A lot of people need to understand this crucial information: It is not Dollar Tree that is going out of business. But it’s Family Dollar stores that are closed. 

Dollar Tree is not closing all of its locations. However, the business planned to close up to 390 Family Dollar locations this year and rename around 200 others as Dollar Tree. 

Furthermore, after a mouse infestation was detected at a delivery plant, Dollar Tree’s Family Dollar brand temporarily shuttered 400 locations in February 2022. However, the corporation has not revealed any intentions to shut all its outlets.

Dollar Tree is a multi-price point bargain variety retail company based in the United States with 15,115 stores in the 48 States and Canada. 

While some Dollar Tree locations have briefly closed due to maintenance concerns, such as lavatory troubles, the company has said it never reduces hours or closes stores.

In summary, Dollar Tree is not closing all of its stores. The company is closing some Family Dollar stores and rebranding others under the Dollar Tree name, but it has yet to announce any plans to complete all its stores.

What Led To The Closure Of Dollar Stores?

No evidence or press reports indicated that Dollar Tree closed all its stores. However, there were rumours that they closed some Family Dollar locations and renamed others as Dollar Tree.

This was part of their ongoing strategy to improve their business and streamline operations.

It’s important to note that stores might have temporarily closed due to maintenance issues or other reasons. Nevertheless, there was no indication that Dollar Tree planned to close all its stores permanently.

Why Did Dollar Tree Experience a Decline?

Dollar Tree’s stock experienced declines for various reasons. In August 2022, the stock fell 18% due to concerns raised by forward-looking statements in their earnings release, indicating pricing pressure and consumer weakness.

Similarly, in August 2021, the stock dropped by 10% due to lower-than-expected results attributed to rising freight costs. Additionally, Dollar Tree’s decision in November 2021 to discontinue offering certain “customer favourites” because of selling items for $1 only could have contributed to the decline.

Moreover, the temporary closure of a Dollar Tree store in the Capital Region due to a lack of operational bathrooms impacted revenue.

It’s worth noting that stock prices can decrease for various reasons, including poor financial performance, negative news, industry changes, or economic trends. However, fluctuations in stock prices may not always reflect the overall performance or financial health of a company.

Dollar Tree’s Financial Challenges and Stock Impact in 2021

In March 2021, Dollar Tree announced its fourth-quarter and full-year 2020 financial results, which showed a decrease in same-store sales growth and earnings per share compared to the previous year. 

The company cited supply chain disruptions, increased freight costs, and inventory challenges as factors that affected its performance.

In addition, some analysts have expressed concerns about Dollar Tree’s ability to maintain its $1 price point amid rising costs and inflationary pressures.

This may have also contributed to decreased investor confidence and a decline in the company’s stock price.

Did Dollar Tree and Dollar General Close Stores in 2023?

Many of you might have needed clarification about whether your nearest Dollar Tree stores would close down; here is the detailed answer.

Although some Dollar Stores and Family Stores closed down, there was no action taken by Dollar Tree, and they did not release any official statement about the same.

Dollar General had shut down several locations for various reasons. Additionally, Dollar General and Family Dollar had started closing shops beginning December 3, 2022.

However, the precise locations that shut down were not published.

Some Dollar General locations were temporarily shuttered in February 2023 due to fire code breaches and unsafe circumstances, with specific details not disclosed.

Furthermore, Dollar General might have eliminated failing locations due to reasons like falling foot traffic, increased competition, and a trend toward online purchasing. However, Dollar General did not announce any substantial store closures.

If you had specific inquiries regarding a Dollar General location, you were advised to contact the company directly or visit their official website for the most up-to-date information.

Dollar Tree’s Business Model 

Dollar Tree’s business model is straightforward: it offers a wide range of products at a fixed price of $1 per item. 

This model has proven successful for the company, as it has attracted a large customer base that values the low prices and variety of products. Dollar Tree sources its products from various suppliers, including manufacturers, distributors, and wholesalers. 

The company’s purchasing team works hard to find the best product deals so it can pass on the savings to customers.

One of the unique aspects of Dollar Tree’s business model is that it offers a mix of branded and private-label products. 

This allows the company to offer products that customers recognize and trust, as well as its products often priced lower than the branded alternatives.

What’s Ahead In 2024?

Looking ahead to 2024, these discount stores have big plans, aiming to open more than 1,500 new stores. On the other hand, in 2024, U.S. retailers have announced 580 store closures, led by CVS Health and Walgreens.

Pharmacy chains like CVS Health and Walgreens are facing challenges due to lower reimbursement rates and competition from Amazon and Walmart. In contrast, dollar stores are doing better as people, worried about rising prices, look for discounts.

Why Did Other Stores Close in 2023?

In 2023, a lot of stores had a tough time, with 80% more closing compared to 2022, according to Coresight Research. There are various reasons for over 4,600 stores shutting down, like a big retail chain going bankrupt and some stores not doing well. Some stores blamed increased theft for closing down.

There are a few trends affecting physical stores. People are buying more things online instead of going to actual stores. Also, because of worries about prices going up, people are spending less on certain things like electronics and jewellery.

But it’s not all bad news for stores. In 2023, even though many closed, about 5,500 new stores opened, which is more than the ones that closed. Some stores moved into spaces that were empty because other businesses closed.

One example is Burlington Stores, whose CEO said that some of their best stores used to be Kmart or Sears locations. Burlington took over more than 40 spaces that used to be Bed Bath & Beyond.

Bed Bath & Beyond had the most closures, with 866 stores shutting down because of their bankruptcy in April. Even though the physical stores are gone, the brand still exists. Overstock.com bought it and made its site BedBathandBeyond.com. They brought back the famous 20% off coupon, but now it’s only for online shopping.

Rite Aid also closed 335 stores last year, which was more than the 158 stores they closed in 2022. The pharmacy chain was facing financial problems and lawsuits related to opioids. They declared bankruptcy in October and were planning to shut down more of their 2,100 pharmacies due to falling sales.

David’s Bridal, a wedding gown store, had almost 100 of its stores closed this year. Even though they filed for bankruptcy in April, they still have around 195 stores open.

Over 80 Christmas Tree Shops closed last year after the New England-based retailer filed for bankruptcy in May. They tried rebranding as “CTS” in 2022 because some people thought they only sold trees.

Party City closed 31 stores in 2023. But it came out of bankruptcy in September, promising to keep most of its 800 stores across the country open.

Dollar Tree’s Competition

When it comes to stores where you can buy things without spending a lot of money, Dollar Tree has friends or, you can say, competition. Let’s check out a few of them:

• Dollar General: Just like Dollar Tree, Dollar General sells lots of things at low prices. They’re all over the United States, especially in rural and suburban areas.

• Family Dollar: Even though some Family Dollar stores are closing, they’re still in the game. They focus on giving you the things you need every day for your home.

• Five Below: This one is a bit different from Dollar Tree because they aim for a slightly higher price—everything is $5 or less. They sell cool stuff like trendy items, gadgets, toys, and accessories.

• 99 Cents Only Stores: These stores, mostly in California, sell a bunch of things for—you guessed it—99 cents or even less.

• Big Lots: While not exactly a dollar store, Big Lots sells things at discounted prices. You can find furniture, home stuff, and things for different seasons.

Whether you need basic things or want to discover something fun, these stores give you other options besides Dollar Tree.

Final Words

In the end, it doesn’t seem like Dollar Tree is closing all its stores in 2024, based on what we know. Even though some Dollar and Family Stores closed due to retail challenges, there’s no sign that Dollar Tree is doing the same. The fact that Dollar Tree stores are still open and there’s been no official statement indicates they’re not undergoing widespread closures.

Thinking about Dollar Tree’s journey since 1986 is impressive. Starting small, it’s become a major player in the discount retail sector in North America. Their unique business idea of selling various products at a fixed $1 price has had a big impact on retail.

As Dollar Tree expands into new places, we’ll keep an eye on how they keep being creative and affecting the retail world. Their success isn’t just about being affordable but also about changing how prices work and catering to specific customers. Looking ahead, Dollar Tree’s plans and flexibility will be crucial for its growth and impact on retail.

We hope you have finally got all the answers you were looking for questions related to Dollar Tree: Is Dollar Tree going out of business? Why did Dollar Store close? Why did Dollar Tree drop? And Which Dollar General stores are closing?