FAMILY Dollar and Walgreens are facing widespread closures, but luck saved one town from reaping the effects.
Shoppers living in Fayetteville, North Carolina, 132 miles east of Charlotte, won’t have to say goodbye to any location with these chains.
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There are 19 Family Dollar stores in Fayetteville and all of them will remain open while the mass closures occur, which Fayetteville Observer reported.
The only Family Dollar location that will close nearby is in Wilmington.
Dollar Tree, which owns Family Dollar, planned to close about 1,000 stores in the first six months of 2024.
The same applies to Walgreens in the city, as the chain is expected to close 150 stores in the US.
Marty Maloney, director of media relations and issues management at Walgreens, confirmed there will be no store closures in Fayetteville.
Maloney was asked if Walgreens included the city in its closing.
He said not “at this time,” the Fayetteville Observer reported.
However, Fayetteville will not be spared with the mass closures on rue21.
The fashion retailer announced that it will close all of its 543 stores.
This includes two stores in Fayetteville, according to documents filed in U.S. Bankruptcy Court, according to the Fayetteville Observer.
The rue21 closures will take place over the next two months.
Best Buy, Express and Red Lobster will also undergo mass closures this year.
MASS CLOSURES
Dollar Tree President and CEO Rick Dreiling explained that his customer base hasn’t been buying as much recently.
“Persistent inflation and reduced government benefits continue to put pressure on low-income consumers who make up a sizable portion of Family Dollar,” said Dreiling, CNN reported.
The company hopes the decision to close a large number of dollar stores will help it grow and get back on the path to profit.
Stores selling at least $1,000 will close, says CEO
Dollar Tree, the parent company of Family Dollar, revealed that it would close about 1,000 stores over the next few years.
The company announced in March that it would close stores after the value of the discount retailer it acquired nearly a decade ago plummeted.
Dollar Tree plans to close about 600 Family Dollar stores in the first half of this year.
This will be followed by the closure of 370 Family Dollar and 30 Dollar Tree stores in the coming years.
The discount store chain also indicated that sales are being affected by the cost of living crisis and inflation.
But USA today added that Dollar Tree has also been hit by reduced government benefits for the Supplemental Nutrition Assistance Program.
This has left families struggling to balance their finances, with up to $250 less per month.
“While we are still in the early stages of our transformation journey, I am proud of what our team has accomplished in 2023 and see a long road of growth ahead,” Dreiling said in March release.
“As we look to 2024, we are accelerating our implementation of multiple pricing at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.”
Walgreens said the reason it is closing 150 stores is because it wants to rework its business plan in 2024.
“We are focused on aligning our operational structure to better serve our patients and customers,” Walgreens said in a statement, per Forbes.
“This includes an assessment of our distribution center operations in order to optimize capabilities to better support our stores.”
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