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According to a CNN story, Dollar Tree and Family Dollar have declared that they will be closing 1,000 shops starting this year due to the increasingly challenging discount market.
A number of these establishments around the nation will be closing their doors as their leases come to an end.
There will be a further 370 store closures at Family Dollar in the coming years, following the hundreds that have already occurred this year.
Its stance toward customers has hardened considerably over the past few years. Although inflation has decreased somewhat in many areas, it is still too high for consumers to enjoy the same level of purchasing power they had previously.
Some food staples and commodities have seen price drops, while the majority have remained relatively unchanged. Spending habits simply need to be more frugal now than they were four years ago.
The corporation has decided to shut down several locations due to consumer spending power being low and the fact that cheap retail sales have become more competitive. They must also contend with retailers like Dollar General and Walmart.
Concerns about customer safety are another big issue with Family Dollar. The Justice Department reported that Family Dollar was hit with a $41.6 million fine this year—”the largest-ever monetary criminal penalty in a food safety case.”
How Did Family Dollar End Up Penalized?
Small animals. According to health authorities, they were caught selling food products kept in a warehouse that was infested with rats. In their investigation, what did authorities discover? Levels of rat activity: living, dead, and decaying.
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Supplements, pet food, cosmetics, medicine, and medical gadgets were among the recalled items in 2022.
Many Dollar Tree locations were dilapidated and in poor shape when Family Dollar acquired the chain, as reported by CNN.
Just Which Retailers Are Set to Go Out of Business?
Earlier this year, several outlets in Texas shut down.
Reuters reports that all of their stores add up to 16,774. This year, 600 Family Dollar locations will be closed. Over the next few years, they intend to shutter 30 Dollar Tree stores in addition to an additional 370 Family Dollar outlets.
