Dollar Tree to close 75 stores while opening 400 new locations this year

Dollar Tree is currently executing a strategic shift in its physical retail footprint, balancing the closure of underperforming stores with an ambitious expansion plan. The Chesapeake, Virginia-based retailer is working to optimize its network of more than 9,200 locations across the United States and Canada. This transformation is occurring during the company's 40th anniversary year.

The company announced in its first-quarter earnings report, released 28 May 2026, that it expects to shutter approximately 75 stores throughout fiscal 2026. While the firm has not identified the specific locations slated for closure, management noted that this pruning process is designed to remove weaker links in its portfolio. Simultaneously, the company plans to open roughly 400 new stores this year, ensuring that its total national footprint continues to grow. This expansion strategy was further detailed in disclosures accompanying the retailer's full-year 2025 results, first reported on 16 March 2026, which showed net sales reaching $19.4 billion.

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A core component of the company's current operational model is the transition toward a multi-price format. According to management, this shift allows the retailer to offer a wider selection of merchandise in the $3 to $5 range, alongside larger pack sizes. During the first quarter, the company converted or added roughly 630 locations to this multi-price model, bringing the total number of such stores to approximately 5,900. Executives suggest that these higher price points have helped increase the average ticket size, providing a necessary buffer against rising costs associated with tariffs, fuel, and inflation.

The planned addition of 400 new locations is not being deployed uniformly. A significant driver of this growth is the acquisition of designation rights for 170 former 99 Cents Only leases across Arizona, California, Nevada, and Texas. This move allows Dollar Tree to secure retail spaces that are already zoned for discount operations, complete with existing parking, utility connections, and established customer traffic patterns. By repurposing these sites—along with vacated properties from chains like Rite Aid, Party City, and Big Lots—the company aims to reduce the time and capital expenditures required for new store launches.

Geographically, the expansion focuses on several key regions:

• The Sun Belt: States including Texas, Florida, and Tennessee are seeing increased activity as the retailer follows suburban population growth. In Florida, the focus remains on fast-growing suburbs around Orlando, Tampa, Jacksonville, Fort Myers, and South Florida.
• Supply Chain Infrastructure: Investment in regional support remains a priority. The opening of a large distribution center in Litchfield Park, Arizona, in 2026 is specifically intended to serve hundreds of stores across the West and Southwest, facilitating higher store density in markets like Nevada.
• Market Diversification: The retailer is increasingly targeting more affluent ZIP codes. Management reports that bargain hunting has become mainstream, with higher-income shoppers visiting to purchase seasonal decor, party supplies, and household basics alongside traditional discount-store customers.
• Established Corridors: In states with existing high store counts, such as Ohio and Pennsylvania, the company is focusing on filling gaps in mid-sized towns and older retail corridors where local pharmacy or variety store closures have left vacant, visible storefronts.

Despite the complexity of this fleet restructuring, the company maintains a positive financial outlook. For fiscal 2026, management has issued guidance projecting net sales between $20.5 billion and $20.7 billion, with adjusted diluted earnings per share targeted between $6.50 and $6.90. CEO Mike Creedon emphasized the importance of these long-term efforts, stating,

"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."