A $40 million fine for rat-infested warehouses, decades-high inflation, reduction in government benefits for shoppers and competition from other discount stores has forced Dollar Tree, Incorporated for closure of 1,000 Family Dollar stores.

Nearly 600 Family Dollar locations will close this year and another 370 stores will shutter in 2025.

Shares of Dollar Tree stock fell by 13% on Wednesday after the store closures were announced.

There are currently around 8,000 Family Dollar locations in the US.