Family Dollar to close 1,000 stores in the next few years

Discount retail company Family Dollar will shutter 1,000 U.S. locations in the coming years.

Around 600 Family Dollar outlets will close by the end of the year, with 370 additional stores turning out the lights in the next few years. Family Dollar’s parent firm, Dollar Tree, will close 30 stores this year as leases expire in various locations.

Family Dollar has a massive reach in the U.S., with 16,774 outlets. By comparison, Dollar Tree has 8,539 locations.  

Despite its numerous locations, the discount retailer has struggled to remain above water in recent years. Dollar Tree CEO Rick Dreiling said the closures are because of “shrink” running rampant. Shrink refers to loss of inventory, which could be caused by theft.

On top of its economic difficulties, the company has come under fire from regulators who say Dollar Tree and Family Dollar stores are poorly maintained and unsafe. The National Labor Relations Board has accused the company of failing to enforce safety standards in its stores and illegally trying to suppress the organization of workers.

The Justice Department recently slapped Dollar Tree with a huge criminal penalty over the conditions in one of its distribution warehouses. Investigators discovered massive safety violations in the warehouse, including a rat infestation.