Are Dollar Tree, Family Dollar stores closing in Tennessee? What to know

Jordan Green and Cheryl McCloud, USA TODAY NETWORK
·3 min read

Family Dollar is set to close over 600 stores in the first half of 2024 which could impact more than 100 cities in Tennessee.

The company is also set to close 370 Family Dollar Stores and 30 Dollar Tree stores over the next several years as leases expire.

There have been no specific store closure announcements.

Family Dollar has over 8,000 stores across 49 states and was bought by Dollar Tree in 2015 for $8.5 billion, according to data company ScrapeHero.

Here is what we know about the closures.

What stores will Family Dollar and Dollar Tree close?

The chain has not released any information as to which stores will be closed.

In the fourth quarter reports for Dollar Tree's 2023 fiscal year, the company announced it would close approximately 600 Family Dollar Stores in the first half of fiscal year 2024. These closures would be followed by about another 370 in the coming months.

“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains, and adjusted margin improvement across both segments,” said Rick Dreiling, chairman and chief executive officer.

“While we are still in the early stages of our transformation journey, I am proud of what our team accomplished in 2023 and see a long runway of growth ahead of us. As we look forward in 2024, we are accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar."

Family Dollar, Dollar Tree's most recent quarter results

Consolidated net sales increased 11.9% to $8.63 billion, the company said, but the operating loss was $1.89 billion. Net loss was $1.71 billion.

Dollar Tree same-store net sales increased 6.3%, driven by a 7.1% increase in traffic, partially offset by a 0.7% decline in average ticket.

Dollar Tree same-store net sales increased 6.3%, driven by a 7.1% increase in traffic, partially offset by a 0.7% decline in average ticket.

Family Dollar, Dollar Tree announced portfolio review last year

During the fourth quarter of fiscal year 2023, the discount chain announced it had initiated a comprehensive store portfolio optimization review to "identify stores for closure, relocation, or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors."

That review was used to determine 600 Family Dollar stores would be closed in the first half of 2024.

Another 370 Family Dollar and 30 Dollar Tree stores will be closed over the next several years at the end of each store’s current lease term.

How many Dollar Tree stores are there in Tennessee?

Dollar Tree, a Fortune 200 Company, operated 16,774 stores across 48 states and five Canadian provinces as of Feb. 3. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada.

There are Family Dollar stores in 110 Tennessee cities, with many communities having more than one store.

There are Dollar Tree stores in 116 Tennessee cities, with some cities having more than one location.

Family Dollar hit with record fine for storing items in rat-infested warehouse

A Family Dollar store on Jackson Avenue is temporarily closed down, one of hundreds such stores in the Mid-South after a rodent infestation at a West Memphis, Ark. distribution plant caused the company to close stores that may have been shipped contaminated products.
A Family Dollar store on Jackson Avenue is temporarily closed down, one of hundreds such stores in the Mid-South after a rodent infestation at a West Memphis, Ark. distribution plant caused the company to close stores that may have been shipped contaminated products.

The recent announcement is the latest in a string of problems for the discount chain.

In February, Family Dollar Stores agreed to pay $41.6 million for storing food, cosmetics, drugs and medical devices in a rat-infested warehouse in Arkansas for years, court records show.

The Dollar Tree-owned discount chain store took a plea agreement in February after being charged with one misdemeanor count of debasing FDA-regulated products by holding them in unsanitary conditions, according to court documents.

Related: Memphis leaders call for investigation into Family Dollar after rodent infestation discovered

By accepting the plea, the company admitted to shipping products until January 2022 from its Arkansas distribution center, where the FDA found evidence of live rodents, dead and decaying rodents, rodent feces and urine, and evidence of gnawing and nesting, court records show.

Dollar Tree said during its fourth-quarter earnings report in March 2022 that the product recall at Family Dollar stores linked to the rodent infestation cost the company $34 million.

This article originally appeared on Memphis Commercial Appeal: Dollar Tree, Family Dollar closing stores in Tennessee? What to know