Retailers are only a few months into 2019, but already there are more than 3,500 store closures planned. The latest news involves Dollar Tree, which is expected to shutter up to 390 Family Dollar locations; Chico’s, which will shut down 60 to 80 shops across the Chico’s, White House Black Market and Soma banners; and Abercrombie & Fitch, which will close up to 40 stores.
Dollar Tree acquired Family Dollar in 2015, but the combined chain continues to underperform rival Dollar General. Same-store sales were up 3.2% at Dollar Tree locations during the retailer’s latest quarter, but overall performance was dragged down by a 1.4% increase at Family Dollar. Investor Starboard Value LP has asked Dollar Tree to consider selling Family Dollar even if the deal comes to a loss, according to The Wall Street Journal.
Dollar Tree still will maintain a significant presence following the closures: the chain included 7,000 locations at the end of the latest quarter, in addition to 8,200 Family Dollar stores. In addition to shuttering underperforming stores, the retailer plans to rebrand 200 Family Dollar locations to the Dollar Tree banner.