New Yorkers may not have as many choices when it comes to Dollar Tree or Family Dollar stores soon. On Wednesday, March 13, 2024, the company announced that it will close nearly 1,000 stores.

Dollar Tree To Close 1,000 Family Dollar Stores
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According to CNN, Family Dollar, which is owned by Dollar Tree, was fined more than $40 million for a rat infestation at a warehouse. In addition, inflation has hurt Family Dollar when it comes to competing for customers with Dollar General and Walmart. On top of inflation, the reduction of government benefits like the Supplemental Nutrition Assistance Program, or SNAP, has affected the discount retailer. The CEO Rick Dreiling said,

“Persistent inflation and reduced government benefits continue to pressure the lower-income consumers that comprise a sizable portion of Family Dollar’s."

Family Dollar, which has approximately 8,000, is expected to close 600 locations this year. Over the next few years, another 370 stores will close as store leases expire. Dollar Tree is expected to close around 30 stores as leases expire.

Dollar Tree Shares Drop To 1-Year Low After Earnings Announcement
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There hasn't been an announcement of which stores will be closed, but customers in New York will likely be affected. According to ScrapeHero, there are 342 Dollar Tree stores in New York, the sixth most stores in any state in America. ScapeHero says there are 302 Family Dollar stores in New York.

Family Dollar has not been as profitable as Dollar Tree assumed it would be, according to CNN,

"Family Dollar stores were in worse condition than Dollar Tree expected when it acquired the business, analysts say. Even though Family Dollar has renovated thousands of stores in recent years, many stores are still poorly maintained. Stores are often understaffed and boxes block aisles."

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