CHESAPEAKE, Va.--(BUSINESS WIRE)--Dollar Tree, Inc. (NASDAQ: DLTR), North America’s leading operator of discount variety stores, today announced that, as part of its ongoing efforts to integrate its support functions through a shared services model, the Company will eliminate 370 positions, including 100 vacant positions, at its Family Dollar store support center in Matthews, NC.
“This announcement represents another step in the process of integrating our two large organizations,” said Bob Sasser, Dollar Tree’s Chief Executive Officer. “Since completing our acquisition a year ago, we have communicated our plans to utilize a shared services model, leveraging our back office functions to support both the Dollar Tree and Family Dollar business segments. These difficult but necessary actions will enhance our ability to efficiently support our businesses, while achieving our stated synergy targets. Our focus continues to be on maximizing our operational efficiencies to drive tremendous value for our customers, while creating long-term value for our shareholders.”
“We will operate and grow both banners,” Sasser added. “At Dollar Tree, everything is $1 while Family Dollar serves as your neighborhood discount store. To insure that we deliver value and the brand standard, we plan to keep our customer-facing organizations separate and focused on the individual banners. Specifically, store operations and merchandising functions will remain largely unchanged. There are no plans to include these functions in the shared services model.”
The Company believes it is well positioned to achieve its goal of $300 million in combined run rate annual synergies by the end of its third year following its July 2015 acquisition. These synergies will be achieved through a combination of savings from sourcing and procurement of products and services; banner optimization; corporate overhead; and optimization of its distribution and logistics networks.
The Company expects to incur pre-tax expense of approximately $6 million during fiscal 2016 related to the restructuring announced today for one-time severance-related benefits.
Dollar Tree is scheduled to report its second quarter 2016 financial results prior to the market open on Thursday, August 25, 2016.
About Dollar Tree, Inc.
Dollar Tree, a Fortune 200 Company, now operates more than 14,000 stores across 48 states and five Canadian provinces. Stores operate under the brands of Dollar Tree, Dollar Tree Canada, and Family Dollar. To learn more about the Company, visit www.DollarTree.com.
