Dollar Tree will close as many as 390 of its Family Dollar stores, it announced when reporting its fourth-quarter earnings that beat analyst forecasts on Wednesday.
The company will remodel another 1,000 locations to include a $1 Dollar Tree category section and alcohol sales, wherever that is legal. It will expand refrigerated sections in roughly 400 stores and switch another 200 Family Dollar stores to the Dollar Tree banner.
Dollar Tree bought the Family Dollar chain in 2014.
The company reported a $2.3 billion loss in the fourth quarter, including a $2.7 billion write-down in the value of the Family Dollar chain. The company's adjusted earnings per share rose by nearly 2 percent and beat analyst forecasts by a penny.