Dollar Tree to Close 1,000 Stores. Watch Out for Bargains

Dollar Tree's decision to close almost 1,000 Family Dollar stores is somewhat of a mixed bag for consumers. On one hand, it could mean fewer affordable shopping options for people who have come to rely on their local Family Dollar. On the other, everything-must-go sales will push Family Dollar's already low prices even lower.

In its latest earnings call, Dollar Tree leadership shared plans to sell off stock at reduced prices in affected stores. Jeff Davis, Chief Financial Officer, said, "We'll run a series of different discounts to help move through the inventory."

Dollar Tree's Family Dollar closures

Dollar Tree bought Family Dollar back in 2015, but the brand has struggled. Stories of rat infestations, dirty stores, crime, and public safety issues have not helped.

Plus, budget-conscious shoppers now have more options. That's due to an increase in online shopping as well as the growth of other low-cost supermarkets like Aldi and Trader Joe's. Depending on where consumers live, they can save money on groceries and still shop in a place that's clean, well-lit, and pleasant.

If you're wondering which Family Dollars will close, that hasn't been announced yet. What we do know is that 600 of the 8,000-plus Family Dollar stores will shut before the end of 2024. A further 370 Family Dollars and 30 Dollar Trees are slated for closure in the following years. It's worth keeping an eye on local news and social media groups to see if a Family Dollar near you might close. Closing-down sales can be a great place to find bargains.

How to make the most of liquidation sales

If you are trying to make the most of every dollar in your bank account, you likely always have an ear to the ground for sales and special offers. After all, nothing beats getting a good deal on something you'd already planned to buy.

That said, when stores are closing, it's worth being picky. There may be a reason these products haven't already sold, so check the packaging carefully and don't buy anything that's dented or damaged. If your local Family Dollar wants to shift its remaining stock, here are some other ways to make the most of any liquidation sales.

1. Check the prices

Don't assume you're getting the lowest prices just because of the sale. Use price comparison apps and check costs online. Dollar stores sometimes sell products that are different weights and sizes from other stores, so work out the price per ounce to compare like with like.

2. Check the sell-by dates

It's always good to check sell-by dates in dollar stores. Limited staff numbers mean there are fewer people to keep track of what's on the shelves. This is even more so in a closing-down sale. The store may have restocked less often in the run-up to the closure. Plus, if something's bad and you want to get your money back, it will be harder to do if the store has shut down.

3. Plan your shopping

It's easy to get caught up in sales, but ultimately a bargain is only a personal finance win if it is an item you will use -- ideally, something you actually need. If it sits in the back of a cupboard, or the food goes bad before you eat it, that's money you've thrown away.

Stop by the store before the sale starts to get a sense of what products you might want to buy, and even make a list. Lists are a great way to avoid impulse buying, as is giving yourself time to think over your purchases.

4. Use up any gift cards

If you have a Family Dollar gift card, use it before the store closes. Sure, Family Dollar is not closing down completely, so there will be other stores you can spend it in. But it may be more of a hassle than spending it locally. Similarly, check to see if you have any Family Dollar Smart Coupons to use while you still have the chance.

Bottom line

The closure of almost 1 in 8 Family Dollar stores could have a big impact on local communities. If you're worried you'll be left without access to affordable groceries, see whether you can get deliveries from other supermarkets by shopping online. And in the meantime, see if you can make the most of any liquidation bargains.