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Dollar Tree to consolidate its support centres

20
Sep '18
Courtesy: Pexels
Courtesy: Pexels
Dollar Tree, a leading operator of discount variety stores, has announced that, as part of its continuing integration of Family Dollar's organisation and support functions, it plans to consolidate its store support centres in Matthews, North Carolina and Chesapeake, Virginia to Dollar Tree's new office tower in the Summit Pointe development in Chesapeake.

"Leadership from both banners has continued to work together to integrate our two organizations and invest in future growth," said Gary Philbin, Dollar Tree's chief executive officer. "By bringing our teams together into one location, we will further improve our ability to support our stores more effectively through enhanced collaboration, communication and teamwork. The completion of our expanded headquarters in Virginia will facilitate the most important phase of the integration and we are excited about the opportunities ahead for the Dollar Tree and Family Dollar banners."

The company has communicated plans to all associates and expects the store support center consolidation to be completed by Fall 2019. While Family Dollar's headquarters facility in Matthews, North Carolina will be closed following the consolidation, the distribution center in Matthews will remain open to serve Family Dollar stores. The company has offered the opportunity for relocation to approximately 700 associates and will be providing job transition benefits and outplacement services to all affected associates.

"Our new 12-story, 510,000 square foot 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."

The company expects to incur total pre-tax expense of approximately $40 million to $49 million, and estimates that $5 million to $8 million will be incurred during fiscal 2018, related to the store support centre consolidation plans announced today. These expenses will include job transition and relocation costs, outplacement services and one-time severance-related benefits. (RR)

Fibre2Fashion News Desk – India


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