Discount retailer Dollar Tree has announced the closure of up to 390 Family Dollar stores in 2019, while planning to renovate 1,000 other locations.
The news comes on the heels of 84 store closures in Q4 2018.
Some 200 Family Dollar store locations will be rebranded as Dollar Tree stores in 2019, while 1,000 locations will undergo renovations.
According to RetailDive.com, the company reported that its consolidated net sales for the 13-week fourth quarter dropped to $6.21 billion from $6.36 billion reported the previous year.
Dollar Tree reported 1.9 billion gross profit, a decline from the $2.1 billion in the prior year's 14-week quarter. The retailer also reported its gross margin declined to 30.8 percent, compared to 33 percent year-over-year, according to RetailDive.com.
Dollar Tree attributes the decline to higher markdowns and costs associated with distribution, occupancy and domestic freight.
In addition to the announcement of the store closures, Gary Philbin, chief executive officer, Dollar Tree, also announced a plan to test selling higher-priced items at the discount retailer.