Dollar Tree recently announced that its CEO and chairman, Rick Dreiling, has decided to step down. This news comes just a few months after Dreiling joined the company as executive chairman in March 2022. He cited personal health reasons for his departure, expressing the need to focus on his well-being and family.
The discount chain, which also owns Family Dollar, has been facing significant challenges this year. Shares of Dollar Tree have plummeted by over 50%, and the company had to lower its expectations for the rest of the year in September. The main reason cited is the intense pressure on its low- and middle-income customers, making it harder for the dollar store to thrive as it once did.
Competition from big-box stores like Walmart and some strategic missteps have also taken a toll on Dollar Tree’s business. In 2015, Dollar Tree bought its competitor, Family Dollar, for $8. 5 billion, aiming to become more competitive against larger companies. However, by early 2024, over 900 Family Dollar locations had shut down.
With Dreiling’s exit, Dollar Tree has named Michael C. Creedon, the company’s COO, as interim CEO and appointed Edward J. Kelly as the new chairman. The company is actively searching for a permanent CEO while continuing to review potential strategic alternatives for Family Dollar, which could include a sale or spin-off.
