Dollar Tree, which has owned Family Dollar since 2015, said Wednesday that 600 Family Dollar stores would close in the first half of 2024, with another 370 locations closing over the next several years. ...
Reuters has also reported that Chinese e-commerce platform Temu has also begun taking market share from dollar stores.
Additionally, dollar stores are facing an increase in theft, referred to as "shrink" in the retail industry.
Guess where those stores are primarily located? In lower-income neighborhoods. These businesses operate on thin margins, necessarily at these price points, so any kind of systemic theft makes it impossible to remain open. The media likes to report that crime rates are down, but one has to wonder with all of these businesses in low-income areas closing up whether it's the rates that have declined, or the reports of crimes from owners who know nothing will be done about it. I suspect it's largely the latter.
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