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We have seen a number of major brands face mass closings this year. Bed bathtub and beyond closed all of its stores in the spring, and Rite has closed hundreds of locations across the United States after having filed a bankruptcy. The next retailer who could soon have much fewer places? Family Dollar, whose mother company Dollar Tree envisages cuts. Read more to find out why Family Dollar could soon see mass closings.

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In a November 29 Press release , Dollar Tree, Inc. (the parent company of Family Dollar) revealed the financial results of its third quarter during the financial year 2023. Despite a 5.4% increase in global consolidated net sales, the sales giant at retail has actually missed its third trimester estimates and has reduced its annual sales forecasts As a result, Reuters reported. AE0FCC31AE342FD3A1346EBB1F342FCB

The company now expects its net consolidated sales at 2023 to decrease between $ 30.5 billion and $ 30.7 billion, despite the previous estimate it would reach between 30.6 billion to 30 , $ 9 billion, according to the media.

"Similar to the other retailers you have heard of this profits this season, we note more macro pressures than we did earlier in the year, especially among our low -income consumers", CEO of Dollar Tree, Inc. Rick Dreiling said during a call for results on November 29.

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Family Dollar's results were particularly worrying for the Dollar Tree company, Inc. The retailer finished the quarter with a 2% increase in net sales of comparable stores, not meeting the company's expectations of an increase in 4.07%, by Reuters. In comparison, the Dollar Tree brand experienced a growth of 5.4% of sales at comparable stores for the same quarter.

"The family dollar failed in our expectations of composition in the quarter," confirmed Dreiling during the call.

Consequently, the company has "launched a complete review" of its family business, according to the CEO.

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According to Dreiling, Dollar Tree, Inc. seeks to "address underperforming stores which are not aligned on our transformative vision of the company". Dollar Tree may decide to reduce some of its family locations in dollars, whether by closing them completely or reversing them.

"This will imply, among other things, to identify stores as candidates for closure, re-bacality or resettlement in order to guarantee that each asset under the banner of the family dollar offers its full value for our shareholders on A sustainable base, "said Dreiling during the call.

He added: "We believe that being thought out on our store portfolio will help improve our results. To maximize value creation, we must periodically reassess our portfolio in terms of current market conditions, individual performances of stores and overall portfolio considerations. "

Dollar Tree, Inc. acquired Family Dollar in 2015, and Dreiling wanted to clearly indicate that the company does not try to abandon it completely. Instead, the CEO said he considered the potential for closings as "reassigned assets" where they could be more productive for Dollar Tree.

"I firmly believe in the Family Dollar brand and what it means for our customers and partners in thousands of communities across the country," said Dreiling. “In the future, we must ensure that the family dollar portfolio is well positioned to succeed and achieves the financial and operational objectives of our organization and the expectations of our precious customers and associates. We believe that this action will be strengthened our base, strengthens our base of our base. Mark, and allow Family Dollar to achieve its full growth potential. ""

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