Dollar Tree and Family Dollar Closing Stores
Here we will discuss the recent news about Dollar Tree and Family Dollar. Both are closing down their stores.
Dollar Tree is closing 30 stores, while 970 Family Dollar stores will be shutting down at the end of this month.
Most of us are concerned for the employees that will be affected by these closures, particularly in lower-income areas, where these stores often serve as essential sources of food and necessities.
The closures are reportedly due to the increase in inflation, making it difficult for the stores to maintain their low prices. We all know the prices of specific items at Dollar Tree, a local grocery store, and Walmart to determine which store offers the best deals.
Hereis a list of Dollar Tree and Family Dollar stores that are known to be closing so far.
Reason Behind Dollar Tree Crisis
Dollar Tree is closing stores due to a Goodwill impairment charge of $1.7 billion and a trade name intangible asset impairment charge of $900.5 million.
This indicates that the value of the assets they acquired when they bought Family Dollar has declined. That is a disappointment in Dollar Tree’s recent financial performance, which has resulted in net losses.
Study shows that Dollar General has survived because they were living in this business a long time ago. The second reason for the Dollar Tree crisis is Family Dollar has been performing lower than Dollar Tree and their merger affected their market.
Is Dollar Tree Raising Prices Again?
Yes, Dollar Tree previously raised their prices by 25% in 2022, increasing from $1 to $1.25. Last year, in 2023 prices further increased to $1.50, with some items reaching $3 and $5.
Dollar Tree merged with Family Dollar in 2015, to grow like bigger retailers like Dollar General and Walmart. The impact of these price hikes will affect families who live in rural areas and also depend on dollar tree cheap products.
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