Dollar store chains like Dollar Tree and Family Dollar are facing challenges as they struggle with store closures, declining sales, and customer dissatisfaction. Factors such as increased prices, expired goods on shelves, chronic staff shortages, and an unpleasant shopping experience have led to a shift in customer attitudes. Competition from larger retailers like Walmart and Aldi, along with supply chain issues and a tight labor market, have further impacted the sector. Dollar General is experimenting with new store formats and product offerings, while Dollar Tree's future may be influenced by its new leadership and a shift towards more private label products.
Mark Miller, CEO of Pic 'N' Save Bargains, is leading a group of investors to acquire more than 100 99 Cents Only Stores in Southern California, aiming to save them from closure. The decision to close the 371 locations was attributed to high inflation and rising theft. This move comes amidst a wider trend of retail struggles, with major chains like Walmart, Best Buy, and Dollar Tree also facing closures and challenges due to inflation and shifting consumer demand.
California-based 99 Cents Only Stores is closing all 371 of its outlets after 42 years, citing struggles related to the COVID-19 pandemic, changes in consumer demand, inflation, and rising levels of product theft. The decision comes after Dollar Tree announced the closure of 1,000 stores last month. The chain, founded by Dave Gold in 1982, initially sold most items at 99 cents but faced challenges in maintaining this pricing model in recent years.
99 Cents Only Stores, with 371 locations in California, Arizona, Nevada, and Texas, is closing down after over four decades due to challenges in the retail environment, including the impact of the COVID-19 pandemic, shifting consumer demand, inflationary pressures, and rising levels of shrink. The privately held company will liquidate its merchandise and dispose of fixtures, furnishings, and equipment, with sales expected to begin soon. This decision reflects broader weaknesses in the dollar-store category, with other retailers like Dollar Tree also announcing store closures.
Ulta Beauty's shares dropped 13% after CEO Dave Kimbell warned of a slowdown in beauty product demand, attributing it to economic pressures and geopolitical conflicts. The company expects sales to grow in the mid single-digits for the year, but the slowdown has been "a bit earlier and bit bigger than we thought." This trend has affected various beauty categories, particularly prestige makeup and haircare. Ulta's anticipated net sales for 2024 are expected to range from $11.7 billion to $11.8 billion, with a projected 4% to 5% increase in comparable sales for the fiscal year.
Tupperware Brands, known for its iconic food storage containers, has expressed doubts about its ability to continue as a going concern due to a liquidity crunch and slumping demand. The company, which saw a boost in sales during the pandemic, has reported ballooning losses and faces challenges with increased costs of materials, labor, and logistics. Tupperware has made efforts to address its financial struggles, including appointing a new CEO, hiring an investment bank, and restructuring its debt, but continues to face delays in its financial reporting filings and ongoing material weaknesses in internal control.
Dollar Tree is closing nearly 1,000 stores, including 600 Family Dollar locations in 2024, representing about 15% of its Family Dollar locations, due to flagging sales and the impact of inflation on its low-income shoppers. The closures are expected to hit some communities hard, as these stores may be the only ones serving the entire area and providing jobs. The company has not released a comprehensive list of the locations it is closing, but some known closures include stores in Illinois, Missouri, New Jersey, North Carolina, and Virginia.
The Federal Trade Commission released a report on grocery supply chain disruptions during the COVID-19 pandemic, revealing that large market participants exacerbated negative effects and distorted competition. Consumers faced skyrocketing prices and product shortages, with some retailers taking advantage of rising costs to increase profits. Smaller firms, especially smaller grocery retailers, struggled more than larger ones to obtain products. The report also highlighted how some larger firms sought favorable supplier allocations and considered buying manufacturing suppliers, potentially further concentrating supply chains. The Commission's findings were based on orders issued to major companies and publicly available industry data, emphasizing the impact on market structure, business conduct, and consumer welfare.
Dollar Tree, the parent company of Family Dollar, plans to close around 1,000 stores due to poor market conditions and store performance, with experts attributing the closures to factors such as inflation and theft. The company aims to close approximately 600 Family Dollar stores in the first half of 2024, with additional closures planned over the next several years. Experts suggest that inflation has led to gross margin compression, impacting profitability, while theft is also a contributing factor. The closures are expected to affect Americans in rural and inner city areas who rely on budget prices.
Joann, the 81-year-old fabric and craft retailer, has filed for Chapter 11 bankruptcy protection, securing $132 million in fresh funding to reduce its $1 billion debt. The company's 850 stores and website will remain open for business, with plans to become privately owned following the bankruptcy process. Declining revenue, a brief pandemic boom, and increased competition have contributed to the company's financial struggles.
Dollar Tree and Family Dollar will close 1,000 stores following an unexpected fourth-quarter loss, with plans to shutter 600 Family Dollar stores in the first half of fiscal 2024 and an additional 370 more Family Dollar locations, as well as 30 Dollar Tree stores over the next several years. Dollar Tree shares fell 14% in value on the news, signaling difficulty in maintaining the value of both brands. The company plans to record a $950 million impairment against Family Dollar's trade name and a $1.07 billion goodwill charge. Despite the closures, Dollar Tree opened 219 new stores within the three-month review that ended Feb. 3 and operates 16,774 stores throughout the 48 contiguous U.S. states and Canada.
The Body Shop is closing its U.S. stores and filing for Chapter 7 bankruptcy, with plans to liquidate assets to pay off creditors. The U.K.-based beauty chain had also filed for restructuring in the U.K. and Canada, with some stores in those countries remaining open. The company, which was acquired by L'Oréal in 2006 and then a private equity group in December, faced financial challenges and a difficult retail environment before collapsing in February.
Bass Pro Shops is set to open its first Pittsburgh-area location in South Fayette Township, offering a 100,000-square-foot Outdoor World store that celebrates the region's sporting heritage and caters to outdoor enthusiasts with a wide range of gear and activities. The store, expected to open in early 2026, will feature hunting and fishing equipment, outdoor gear for activities like hiking and camping, as well as a nature and gift center. Founded by Johnny Morris in 1972, Bass Pro Shops is known for creating immersive experiences that connect customers to nature, and the new location aims to serve the sportsmen and women of western Pennsylvania.
ALDI announces plans to open 800 new stores across the United States by 2028, including conversions and organic growth following the acquisition of Southeastern Grocers. The expansion will focus on the Southeast, Northeast, Midwest, and West, with a phased approach to store conversions beginning this summer. CEO Jason Hart emphasizes the company's commitment to meeting customer demand for affordable, quality groceries and providing a convenient shopping experience, with a focus on community impact.
American Eagle unveils a new strategy to boost profitable growth over the next three years, reporting holiday earnings that beat expectations and taking $94 million in impairment charges related to its internal logistics business Quiet Platform. The retailer's reported net income for the fourth fiscal quarter was $6.32 million, with sales rising to $1.68 billion. American Eagle plans to focus on financial discipline and optimizing operations to fuel growth and long-term profit, aiming for mid-to-high teens annual operating income expansion and 3% to 5% annual revenue growth over the next three years. The company also seeks to increase profits by amplifying its brands, boosting Aerie's expansion, and developing the activewear assortment at its Offline banner.
