Dollar Tree is eliminating 370 positions, including 100 that are vacant, as part of the retailer’s ongoing efforts to integrate support functions following its acquisition of Family Dollar. The positions are located at the 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 CEO. “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.”
Sasser said the company 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 2015 acquisition of Family Dollar. 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, company officials said.
The company expects to incur pre-tax expense of approximately $6 million during fiscal 2016 related to the restructuring for one-time severance-related benefits.
