The Discount store chain Dollar Tree has decided to shut down the doors of 390 stores in the United States of America. The company has taken this decision after facing $2.73 billion in the losses. As the 390 of the stores are going to be shut permanently, the remaining ones will be rebranded vigorously to increase the sales and ultimately the profits. With 390 stores gone from the total number of the stores, only 1000 are remaining. Out of the one thousand remaining stores, the company would add freezer section in the 400 stores and nearly 200 will get rebranded from Family Dollar Store to Dollar Tree.
While announcing the quarterly results, CEO Gary Philbin said that they are confident and taking appropriate steps to reposition the Family Dollar Store business and increase profitability as the business is expected to gain traction in the Fiscal year 2019. The renovation would be aggressive to gain traction and introduce new products in the market. The renovated Dollar Tree stores will sell Alcohol as the company is ready to launch the Freezer and Cooler Section. As of 2nd February, Dollar Tree had 7,001 locations and 8,236 Family Dollar locations worldwide.
The company reported the profits of $1.93 per share on 2nd February and on an unadjusted basis, the company lost $9.66 per share in the last quarter. The active investor Starboard Value owns 1.2 percent of the equity of the company. The investor has forced the management to take this decision of shutting down the stores that are not providing any good results and renovate the remaining ones. After the quarterly reports announced, the stock of Dollar Tree rose by 2 percent in Intraday trading Session in the NYSE. As of this date, Dollar Tree operates 15,237 stores combined in the United States of America and Canada.