Today the popular cheap goods stores Dollar Tree and Family Dollar (which is owned by Dollar Tree) announced they would be closing 1,000 locations over the next several years, due to Americans spending a lot less.
In a press release published today, Dollar Tree, Inc., explained that this plan is part of their âPortfolio Optimization Review and Impairments,â in which the company has determined that shuttering a thousand of its retail locations is the prudent decision to cut some of their losses.
During the fourth quarter of fiscal 2023, the Company announced that it had initiated a comprehensive store portfolio optimization review which involved identifying stores for closure, relocation, or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors.
As a result of this review, we plan on closing approximately 600 Family Dollar stores in the first half of fiscal 2024. Additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each storeâs current lease term.
In the fourth quarter of 2023, we incurred $594.4 million of charges in connection with the store portfolio review. Additionally, we incurred a goodwill impairment charge of $1.07 billion and a trade name intangible asset impairment charge of $950 million. Details of these charges are provided in the Reconciliation of Non-GAAP Financial Measures at the end of this release.
The company wrote
Dollar Tree, a Fortune 200 Company, operated 16,774 stores across 48 states and five Canadian provinces as of February 3, 2024. However, the company did say that they âopened 219 new stores in the fourth quarter, bringing full-year new store openings to 641,â the company said…
READ FULL ARTICLE HERE… (winepressnews.com)
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