Dollar Tree, as part of its continuing integration of Family Dollar’s organization and support functions, plans to consolidate its store support centers in Matthews, North Carolina and Chesapeake, Virginia, to the company’s newly-completed office tower in the Summit Pointe development in Chesapeake.
The company expects the 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.
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 initiative. These expenses will include job transition and relocation costs, outplacement services and one-time severance-related benefits.
“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 CEO. “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.”