Dollar Tree to close stores, add alcohol in 2019

Dollar Tree plans to expand freezers and coolers to accommodate more food and beverage products, and also intends to add adult beverages to its offerings in 2019, company executives said on March 6. But the company also expects to accelerate its pace of store closings during the year.

“In fiscal 2019, at Family Dollar, we plan to complete at least 1,000 store renovations and 200 rebanners,” Gary M. Philbin, president and chief executive officer of Dollar Tree, Inc., said during a March 6 conference call with analysts. “We are further accelerating store closings and expect to close as many as 390 underperforming stores. And because of age, layout, location, unfavorable lease terms or other factors, (they) are not expected to provide an adequate return on investment for the cost of renovation. Final number of actual stores closures will be affected by ongoing lease negotiations.”

Dollar Tree said it typically closes around 75 stores a year.

Kevin S. Wampler, chief financial officer, said the company expects fiscal 2019 consolidated capital expenditures to total approximately $1 billion. The expenditures will be focused on 350 new Dollar Tree stores, 200 Family Dollar stores, 1,000 Family Dollar renovations and 200 rebanners from Family Dollar to Dollar Tree. Mr. Wampler said expenditures also will include the addition of frozen and refrigerated capability at 500 new and existing Dollar Tree stores and 400 Family Dollar stores, as well as the addition of adult beverages to 1,000 stores.

Read More Here

Related Posts

Recent Posts