During its 2026 fiscal year, the company plans to close about 75 stores while also expanding its network.
During the first quarter, the company added 113 new stores, raising its total count to 9,382 outlets throughout the U.S. and Canada as of May 2.
CEO Mike Creedon said: "As we celebrate our 40th anniversary in 2026, we are encouraged by the progress we are seeing across the business and remain focused on making thoughtful investments in our stores, assortment and customer experience - building Dollar Tree to last for decades to come."
According to a February Bloomberg News report, roughly 50% of Dollar Tree locations added over the past six years were situated in affluent urban areas, compared to 41% during the preceding six-year period.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
Additionally, the company either transitioned or introduced roughly 630 locations to its varied-pricing model in the quarter.
This dual strategy of closing underperforming stores while aggressively expanding in more affluent neighborhoods reflects Dollar Tree's effort to adapt to changing consumer spending habits. The multi-price format, which now covers the majority of its locations, allows the company to cater to a broader customer base, including those willing to pay more for certain items. By targeting higher-income areas, Dollar Tree is positioning itself to capture market share from competitors like Family Dollar and other discount retailers, while also weathering inflation pressures that have squeezed lower-income shoppers.
Dollar Tree's latest earnings report showed first-quarter revenue of $6.9 billion, up from $6.3 billion a year earlier, though net income dipped slightly due to costs related to store renovations and supply chain upgrades. The company has been testing higher price points - some items now sell for $3, $4, or $5 - to attract shoppers who still want bargains but are willing to spend more for quality. This strategy mirrors broader retail trends, where dollar stores increasingly compete with big-box retailers and grocery chains for cost-conscious consumers. The planned store closures are concentrated in lower-traffic locations, while new openings target areas with rising household incomes, reflecting a deliberate repositioning as the chain marks its 40th year in business.
As discount retailers face intensifying competition, Dollar Tree's moves align with industry shifts. With roughly half of its recent new stores in affluent areas, the company is tapping into a demographic that may have previously visited higher-end retailers. Meanwhile, the closure of underperforming locations in lower-traffic zones helps streamline operations.
The first-quarter revenue growth to $6.9 billion, despite a slight dip in net income, underscores the costs of this transformation. By expanding its multi-price offerings, Dollar Tree aims to retain budget-conscious shoppers while attracting those willing to spend more, a balancing act that reflects the broader pressures on the retail sector.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
