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Dollar Tree has revealed plans to shut down 1,000 of its Family Dollar and Dollar Tree stores. The decision comes after the company conducted a thorough review of its store portfolio during the fourth quarter of fiscal 2023.

According to the company’s announcement, “During the fourth quarter of fiscal 2023, the Company announced that it had initiated a comprehensive store portfolio optimization review which involved identifying stores for closure, relocation, or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors.”

The closure strategy outlines the planned shutdown of approximately 600 Family Dollar stores in the first half of fiscal 2024. This will be followed by the eventual closure of about 370 Family Dollar and 30 Dollar Tree stores over the next several years as their respective leases conclude. The company, which reported operating over 16,000 stores across 48 states in the US and five Canadian provinces as of early February, is adjusting its operations in response to changes in the retail environment.

A recent study highlighted the popularity of dollar stores in American retail, indicating that these types of stores were popular among low-income households and communities of color. This study also highlighted the nutritional concerns associated with the food and beverages offered at these stores, blaming the products they carry for “obesity and food insecurity” in underserved regions, particularly in the remote South.