Nearly 400 Family Dollar stores to close in 2019

CHESAPEAKE, Va. (WLUC) - Up to 390 Family Dollar stores could close in the U.S. this year, while about 200 others will turn into Dollar Tree stores.

Dollar Tree made the announcement when releasing its fourth quarter and 2018 fiscal year earnings Wednesday. The company has not released a list of which locations which are affected.

Dollar Tree bought Family Dollar in 2015. Family Dollar sells a variety of items for under $10. Dollar Tree sells everything for $1.

Dollar Tree says it will accelerate its store optimization program in 2019 and currently expects to renovate at least 1,000 Family Dollar stores. The company plans to open 350 new Dollar Tree and 200 new Family Dollar stores, as well as convert an additional 200 Family Dollar stores to Dollar Tree stores.

The company also expects to accelerate its pace of Family Dollar store closings by closing as many as 390 additional under-performing stores. The total number of stores closed may change depending on the company's ability to achieve material rent concessions from landlords.

Dollar Tree says its gross profit decreased by $74.4 million to $6.95 billion in the 52-week fiscal 2018 compared to $7.02 billion in the prior year’s 53-week period.

The company had 15,237 stores in 48 states and five Canadian provinces as of Feb. 2.

TV6, FOX UP and UpperMichigansSource.com will continue to follow this developing story.