Discount retail chain has closed nearly 700 stores

When times are tight, radical commercialized down. They mightiness instrumentality a section abrogation oregon adjacent a staycation alternatively of getting connected a plane, and they whitethorn opt for a little bully restaurant, oregon adjacent cooking for themselves erstwhile it comes to meals.

That's a inclination some McDonald's and Dollar General's CEOs person noted successful caller net calls.

"In the U.S., we proceed to spot a bifurcated user base, with QSR postulation from lower-income consumers declining astir treble digits successful the 3rd quarter, a inclination that's persisted for astir 2 years. In contrast, postulation maturation among higher-income consumers remained strong, expanding astir treble digits successful the quarter," said McDonald's CEO Christopher Kempczinski during the chain's third-quarter net call.

Dollar General's CEO, Todd Vasos, shared his thoughts connected akin behaviour during his company's first-quarter net call.

"While our halfway lawsuit remains financially constrained, we person seen accrued trade-in enactment from some middle- and higher-income customers. Our information shows that caller customers this twelvemonth are making much trips and spending much with america compared to caller customers from past year, portion besides allocating much of their walk to discretionary categories," helium shared.

He suggested a crushed down this trend.

"We judge these behaviors suggest that we are continuing to pull higher-income customers who are looking to maximize worth portion inactive buying for items they privation and need," helium added.

Both McDonald's and Dollar General person managed to grow, contempt losing immoderate of their halfway customers.

• McDonald’s reported U.S. same‑store income up 2.4% successful its astir caller (third) quarter.

• Dollar General reported U.S. comparable store income successful Q2 were up 1.2% twelvemonth implicit year successful its astir caller disclosed quarter.

Not each brands person followed the aforesaid trajectory, however. Dollar Tree, for example, has struggled, and it made the determination past twelvemonth to adjacent 1,000 locations, mostly stores nether its Family Dollar brand, which it besides planned to merchantability (and has since sold).

Family Dollar archetypal shared plans to adjacent astir 1,000 stores successful its fourth-quarter 2023 net report.

"We program connected closing astir 600 Family Dollar stores successful the archetypal fractional of fiscal 2024. Additionally, astir 370 Family Dollar and 30 Dollar Tree stores volition adjacent implicit the adjacent respective years astatine the extremity of each store’s existent lease term," the institution shared successful the release.

The concatenation has since made a woody to merchantability the Family Dollar Brand.

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Dollar Tree reached an statement with Brigade Capital Management and Macellum Capital Management, which volition spouse to acquisition the Family Dollar concern segment. The acquisition terms for Family Dollar, nether the presumption of the agreement, is conscionable implicit $1 billion, taxable to customary closing adjustments.

“This is simply a large milestone successful our multi-year translation travel to assistance america afloat execute our potential,” said Dollar Tree CEO Mike Creedon successful a property release. “We volition proceed to turn and optimize our Dollar Tree concern to maximize worth for Dollar Tree associates, customers, and shareholders."

Dollar Tree has opened stores portion besides closing locations.Trong Nguyen/Shutterstock

While it's not known whether Family Dollar's caller owners volition proceed shutting down locations, Dollar Tree closed astir 95 much stores crossed some brands successful the earlier portion of 2025.

"As of February 1, 2025, we had closed astir 695 stores identified nether the portfolio optimization review," Dollar Tree shared successful an yearly report.

The concatenation did not notation immoderate closures successful its second-quarter net release, but did unfastened immoderate caller locations and remodeled others.

The concatenation "opened 106 caller Dollar Tree stores and converted astir 585 stores to our 3.0 multi-price format," it shared.

Zach's Equity Research likes the caller store format and upgrades.

"Dollar Tree’s 3.0 multi-price strategy has been moving excellently. The 3.0 stores are caller oregon converted, offering expanded multi-price assortments. In the astir caller quarter, the institution opened 33 Dollar Tree stores, bringing fiscal 2024 store openings to 525. At the extremity of fiscal 2024, it had astir 2,900 Dollar Tree 3.0 multi-price format stores, including 2,600 conversions and 300 caller stores," it shared.

While the concatenation inactive plans to adjacent prime stores, its second-quarter results suggest that its turnaround program has succeeded.

• Dollar Tree same-store nett income +6.5% connected +3% postulation and +3.4% ticket

• Diluted net per stock (EPS) from continuing operations of $0.75

• Adjusted diluted EPS from continuing operations of $0.77, including $0.20 of affirmative impact, comparative to expectations, related to tariff timing

• Completed implicit $1 cardinal of stock repurchases twelvemonth to date

• Increasing full-year fiscal 2025 nett income outlook scope to $19.3 to $19.5 billion, based connected comparable store nett income maturation successful the scope of 4% to 6%

Dollar Tree CEO Michael Creedon shared thoughts connected his company's results during its second-quarter net call.

"So let's locomotion done the Q2 highlights. Net income accrued 12.3% to $4.6 billion, driven by a 6.5% comp income growth, which is simply a coagulated effect successful a 4th without large postulation driving events oregon holidays. Importantly, comp maturation was nicely balanced betwixt postulation and summons and betwixt consumables and discretionary," helium said.

Putting up a bully fig was not his main goal, however.

"Our Q2 show was not conscionable astir exceeding a acceptable of net expectations. It was astir gaining share, expanding our relevance to a broader basal of customers, and proving erstwhile again that Dollar Tree thrives erstwhile customers absorption connected value," helium added.

Ouside analysts look blessed with the results, too.

PYMNTS.com believes that its displacement from being a existent dollar store has helped the chain.

"One of the astir noteworthy initiatives is the rollout of Dollar Tree’s multi-price format. This caller strategy, which has been implemented successful 1,600 stores, aims to diversify the merchandise scope with items priced betwixt $1.50 and $7," according to the website. "The extremity is not to rise prices connected existing products, but to present caller items astatine higher terms points, successful a bid to heighten the buying acquisition and pull much customers."

TipRank's Stephen Ayers thinks that not having Family Dollar volition payment the chain.

"A person look astatine the discount retail giant’s fiscal show without Family Dollar reveals that DLTR whitethorn tally a spot lighter without its slower half. This makes maine cautiously optimistic astir DLTR contempt immoderate notable challenges ahead, similar competition, inflation, and tariffs. I stay neutral connected the banal portion I hold for the adjacent developments," helium wrote.

Related: Another convenience store concatenation closing each locations

This communicative was primitively reported by TheStreet connected Nov 22, 2025, wherever it archetypal appeared successful the Retail section. Add TheStreet arsenic a Preferred Source by clicking here.