In its First Quarter Report, Dollar Tree Inc. confirmed it will renovate at least 1,000 Family Dollar stores, which the company acquired in 2015.
Changes will include the addition of alcoholic beverages to these stores. The company said approximately 45 Family Dollar stores began selling alcohol in the first quarter, and 55 stores have expanded freezers and coolers.
The company began testing renovations on Family Dollar stores in 2018 and said they have yielded a 10% increase in sales, on average, compared to locations that have remained the same.
“[These] stores perform well in a variety of locations, and especially in locations where Family Dollar has been most challenged in the past,” the company said.
Dollar Tree will also close up to 390 “under-performing” stores this year and convert 200 Family Dollar stores to Dollar Tree. Dollar Tree CEO Gary Philbin also told Fox Business that he also expects 500 stores (between Family Dollar and Dollar Tree) to open in 2019.
Dollar Tree operated 15,264 stores across 48 states and five Canadian provinces as of May 4. Stores operate under the brands of Dollar Tree, Family Dollar and Dollar Tree Canada.
