Dollar Tree and its subsidiary, Family Dollar, will close 1,000 stores following a net loss of $1.71 billion over three months, the discount retailer said Wednesday.
The company plans to close about 600 Family Dollar stores in the first half of this year and allow about 370 Family Dollar stores and 30 Dollar Tree stores to close over the next few years at the end of their lease terms.
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Minneapolis-based Target Corporation announced Tuesday that it is closing nine stores in four different states, citing “theft and organized retail crime.”
The closures include locations in New York City, Seattle, San Francisco, and Portland, according to a press release.
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Financial executives across the retail industry have been forced to adjust strategies to account for customer expectations as inflation puts pressure on outlets, The Wall Street Journal reported Friday.
Major retailers, including Macy’s and Target, who used discounts to clear excess inventory after overestimating demand for their products following a wave of pandemic-era retail spending, are being forced to develop strategies, such as reducing the size of bundles or subtly cutting down on discounts, to entice customers while protecting profit margins, the WSJ reported. Dollar stores have gained popularity as consumers struggle with inflation and — in tandem with the more aggressive discounting campaign by retailers — customers’ heightened demand for value has left some retailers concerned that customers might start to expect discounts that damage profits.
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The pharmaceutical chain Walgreens will be closing five stores in San Francisco, California due to a spike in “organized” shoplifting impacting its locations, according to MarketWatch via MSN.
The decision was made by Walgreens’ parent company, Walgreens Boots Alliance Inc., which will relocate all employees to new locations and ship all outstanding prescriptions to other stores within one mile of the original stores. The stores will be shut down sometime between November 8th and November 17th.
“Retail theft across our San Francisco stores has continued to increase in the past few months to five times our chain average,” the company revealed in the statement announcing the decision. “To help combat this issue, we increased our investments in security measures in stores across the city to 46 times our chain average, in an effort to provide a safe environment.”
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Vacant big box stores in Michigan become tax-reducing boons to retail companies statewide when those establishments have property assessed at rates sometimes 50% lower than previous rates.
This is known as a “dark stores” strategy, which often leaves local taxpayers to foot the tab.
An S&P report released Thursday found the strategy is employed nationwide.
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