Greenback Tree Inc. will shutter roughly 600 Household Greenback shops within the first half of its 2024 fiscal yr, which started Feb. 4, 2024. The low cost retailer additionally plans to shut an extra 370 Household Greenback shops and 30 Greenback Tree areas over the following a number of years as every retailer’s present lease expires.
The retailer opened 219 shops throughout its This autumn for a complete of 641 through the full fiscal yr. Greenback Tree’s transfer to shut almost as many shops because it opened the earlier yr comes after a complete retailer portfolio optimization evaluation performed through the retailer’s 2023 This autumn. The method concerned figuring out shops for closure, relocation or re-bannering.
“Whereas we’re nonetheless within the early levels of our transformation journey, I’m happy with what our workforce achieved in 2023 and see an extended runway of development forward of us,” mentioned Rick Dreiling, Chairman and CEO of Greenback Tree in a press release. “As we glance ahead in 2024, we’re accelerating our multi-price rollout at Greenback Tree and taking decisive motion to enhance profitability and unlock worth at Household Greenback.”
Greenback Tree’s This autumn and FY outcomes present the challenges the retailer faces with its Household Greenback banner. Identical-store gross sales throughout This autumn rose 6.3% for the Greenback Tree phase however fell 1.2% at Household Greenback, for an enterprise-wide acquire of 3%. For the total yr, Household Greenback did present same-store gross sales development of 3.2%, however the Greenback Tree shops outpaced them, rising 5.8% for an enterprise-wide enhance of 4.6%. The retailer generated $30.6 billion in consolidated internet gross sales for the total yr, an 8% enchancment over the earlier fiscal yr.
Whereas Greenback Tree is trimming its retailer fleet, a number of different retailers have introduced enlargement plans over the previous few weeks:
