Dollar Tree to close 75 stores this year, but prepares much larger expansion
The discount chain plans to close the shutters on dozens of stores during 2026, although at the same time it will open nearly 400 new stores
Dollar Tree will close about 75 stores during its 2026 fiscal year, a decision that could raise concern among customers who rely on the chain for groceries, household items and low-cost products.
However, the announcement does not respond to a general withdrawal from the market. The company also plans to open nearly 400 new branches, so it would end 2026 with several hundred more stores than at the beginning of the year.
The company included both forecasts in its first quarter results. So far, Dollar Tree has not released a full list of stores that will close or detailed which states the declines will be concentrated in.
How many stores Dollar Tree will close in 2026
The official forecast contemplates around 75 closures during fiscal year 2026. The figure is similar to that recorded during the previous year. In the year ending January 31, 2026, Dollar Tree closed 72 stores, opened 402 and converted an additional 71 former Family Dollar locations to its flagship brand.
This shows that the closures are part of the normal network review process. Large chains typically evaluate each location's performance, rental costs, customer traffic, proximity to other locations and market conditions before deciding whether to renovate a store, move it or close it.
Dollar Tree did not publicly explain what criteria will be applied to each of the 75 stores planned for this year.
Is there a list of branches that will close?
For now, there is no official and complete national list with the addresses of the affected premises. The company announced the estimated number of closures, but did not identify the specific cities, states or dates. Some closures may become known gradually through local notices, communications to employees, inventory liquidations or business records.
Therefore, it is advisable to be wary of publications that present old Family Dollar listings as if they correspond to the 75 current Dollar Tree closures. They are different processes.
The company sold Family Dollar in 2025 and now presents its financial results on Dollar Tree's operation in the United States and Canada.
Dollar Tree will open nearly 400 stores
The fact that changes the reading of the announcement is the expansion plan. Dollar Tree plans to open approximately 400 new stores during 2026, more than five times the number it plans to close. If both figures are met, the net balance would be about 325 additional stores, not counting subsequent transfers or modifications.
During the first quarter, the chain already opened 113 stores. As of May 2, it operated 9,382 stores under the Dollar Tree brand in the United States and Canada.
The strategy shows that the company is not reducing its presence. It is closing some locations as it looks to grow in other markets or replace less convenient establishments with new stores.
Why Dollar Tree continues to expand
Recent results help explain the plan. First quarter net sales increased 7.2% and reached about $5 billion. Comparable sales — those of stores open for at least a year — grew 3.5%.
The number of visits decreased by 1%, but the average spend per purchase increased by 4.5%. That is, fewer customers entered the stores, but those who did spent more.
The company also raised its full-year adjusted earnings forecast and maintained its annual sales expectation between $20.5 billion and $20.7 billion.
The price change also drives the new model
Dollar Tree long ago stopped operating exclusively as a chain where all products cost $1. Its base price increased to $1.25 and many stores added $3, $5 and higher value items. The company calls this system “multi-price format.”
During the first quarter of 2026, it converted or added that format in approximately 630 stores. At the end of the period, around 5,900 stores already offered products at different price levels.
The company maintains that this strategy allows it to expand the assortment and incorporate larger products, well-known brands and items that it could not previously sell within the traditional limit.
However, the change also generated criticism among consumers who believe that the chain moved away from its original proposal of extremely low prices.
What could happen to employees
Dollar Tree did not say how many jobs will be affected by the 75 closures. The impact will depend on the size of each location, the availability of other nearby stores and whether the company offers transfers to employees. In some cases, closures may coincide with new openings within the same region, but there is no guarantee that all workers can be relocated.
The company also did not detail whether some of the 75 dismissals will be permanent closures or transfers to new properties.
Dollar Tree would end the year with more stores
The announcement of 75 closures may seem significant in isolation. However, it represents less than 1% of the 9,382 establishments that the chain operated at the end of the first quarter.
In addition, the 400 planned openings show that Dollar Tree is committed to expanding its network, not shrinking it.
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