Dollar Tree Inc. will close down nearly 400 Family Dollar stores in 2019 as the company looks to "reposition," reported Wednesday. The retail company's financial woes allegedly stem from their $8.5 billion purchase of , a move which Starboard Value CEO Jeffrey Smith has criticized. Starboard owns 1 percent of Dollar Tree.
"Dollar Tree significantly overpaid for Family Dollar, and this business is proving to be a meaningful distraction," Smith said in January. "The underperformance at Family Dollar since the acquisition has persisted long enough."
According to CNN, 120 locations shuttered in 2018 with 390 more to close in the new year. Meanwhile, 200 a rebranding to become Dollar Trees. A thousand remaining stores are set for renovations and will incorporate new $1 Dollar Tree merchandise and alcohol sections.
"We are confident we are taking the appropriate steps to reposition our Family Dollar brand," CEO Gary Philbin said in a : "Sales for the quarter were strong. Our results demonstrate the increasing strength of the Dollar Tree brand, and accelerated progress on the Family Dollar turnaround, as Family Dollar delivered its strongest quarterly same-store sales growth of the year."
Although competitors like Amazon and Walmart remain a threat, reports Dollar Tree earned roughly $22 billion last year. It looks like the discount concept isn't completely on its way out.
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