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Dollar Tree to relocate Family Dollar support centers

Dollar Tree has made a new move to further integrate Family Dollar into its operations.

The discounter said that it plans to close Family Dollar’s store support centers in Matthews, North Carolina and Chesapeake, Virginia. These operations will be relocated to Dollar Tree’s newly-completed office tower in Chesapeake. The consolidation will be complete by fall 2019.

The company’s Matthews-based distribution center will remain open to serve Family Dollar stores.

Dollar Tree has offered to relocate to approximately 700 associates impacted by the consolidation. The company will also provide job transition benefits and outplacement services to all displaced associates, according to the discounter.

The company expects to incur total pre-tax expense of approximately $40 million to $49 million due to the consolidation plan, and estimates that $5 million to $8 million will be incurred during fiscal 2018. These expenses will include job transition and relocation costs, outplacement services and one-time severance-related benefits, Dollar Tree reported.

“Our new 12-story, 510,000 sq. ft. office tower represents the anchor of a dynamic campus environment serving the needs of our associates,” said Bob Sasser, Dollar Tree’s executive chairman. “We are eager to welcome all associates relocating to the Chesapeake area to participate in, and benefit from, the company’s next phase of growth.”

Dollar Tree acquired Family Dollar in 2015 for $9.1 billion.
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