Dollar Tree plans to close 75 stores in fiscal 2026 while opening roughly 400 new locations, according to the company’s first-quarter earnings report released in May, a net expansion that underscores its strategy to upgrade its dollar tree retail footprint and shift toward affluent neighborhoods. The Chesapeake, Virginia-based retailer expects its overall store count to grow despite the closures, bringing total locations to approximately 9,700 by year’s end.
The closures are part of a broader quality initiative. CEO Michael Creedon acknowledged during the earnings call that 42% of Dollar Tree’s stores fell below the company’s own standards, though he noted significant progress in improving that metric. “We were chasing 42% below our standard,” Creedon said. “That’s significantly high. That’s less than 1/3 today. So we haven’t broken that out. But I’ll tell you right now, that’s less than 1/3, still not where we want it to be, but significant improvement.”
The company has been systematically remodeling and relocating underperforming stores. Creedon compared the effort to cleaning a house: “Every room in your house is a mess, it takes longer to clean it. As you start cleaning room to room, it gets easier to clean up the kitchen.” Dollar Tree closed more than a dozen locations in March 2026, including four in New Jersey and three in New York, according to store-tracking data.
Expanding Into Wealthier Markets
Dollar Tree’s expansion strategy includes a deliberate shift toward more affluent areas. A February 2026 Bloomberg analysis found that 49% of new Dollar Tree stores opened in the last six years were located in wealthier parts of metro areas, up from 41% in the preceding six years. This move targets higher-income shoppers who tend to spend more per visit.
The 113 stores opened during the first quarter brought Dollar Tree’s total footprint to 9,382 locations across the United States and Canada as of May 2. The company also converted or added about 630 stores to its multi-price format during the quarter. About 5,900 locations now sell products at various price points rather than the traditional $1.25 price point, a significant shift in the company’s retail strategy.
CEO Creedon emphasized the company’s focus on improvement across multiple fronts. “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,” he said in a statement.
The multi-price format expansion reflects Dollar Tree’s broader transformation. The company projects net sales between $20.5 billion and $20.7 billion for fiscal 2026, with comparable-store sales growth of 3% to 4%, driven partly by the success of its multi-price strategy and improved pricing initiatives.
Sources
- Fox Business — Dollar Tree’s Q1 2026 earnings report, store count, multi-price format details, and Bloomberg analysis on affluent-area expansion
- TheStreet — CEO Creedon’s earnings call statements on substandard stores, the improvement metric, and store closure plans
- MSN — Confirmation of 75 store closures and 400 new store openings in fiscal 2026
- Retail TouchPoints — Dollar Tree’s 2026 store expansion and multi-price strategy details
