With 75+ locations in New Jersey, 970 Family Dollar stores to close: report

Apparently, you can have too many dollar stores.

Published reports say Dollar Tree plans to close nearly 1,000 Family Dollar stores across the country starting this year.

According to FOX Business, the decision comes as Dollar Tree suffered "a significant quarterly loss" with its Family Dollar stores due to product recalls across numerous states this past fall, weak holiday sales at the end of last year, competition from other stores like Walmart, and a shift in consumer spending habits.

Dollar Tree purchased the Family Dollar chain in 2015 for around $8.5 billion. Less than five years later, the company closed nearly 400 Family Dollar stores as it struggled to effectively manage both chains.

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The company plans to close 600 stores in the first half of this year with another 370 stores closing as their leases expire.

As of earlier this year, the company owned over 16,000 stores across the country, nearly evenly divided between the Dollar Tree and Family Dollar brands.

Family Dollar Stores in New Jersey Closing?

There are about 75 Family Dollar stores across the Garden State, with some towns having more than one within their borders.

Officials with Dollar Tree have not indicated which stores will be closing.

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Lots of Dollar Stores

As inflation takes a bigger bite out of people's paychecks, consumers are turning more toward discount chains for daily necessities.

At the end of 2022, there were just over 37,000 dollar-type stores across the country.

Dollar Tree is forecasting around $31 billion in sales this year while its chief competitor, Dollar General, plans on opening 900 new stores in 2024.