Dollar Tree CEO Rick Dreiling steps down

Dollar Tree Chairman and CEO Rick Dreiling stepped down from his leadership position with the discount grocer, citing health issues, the discount retailer announced Monday.

Michael Creedon, Jr., chief operating officer, has been named interim CEO while Edward Kelly, III, Dollar Tree’s lead independent director, has been elected chairman.

“With my health presenting some new challenges over the past two months, the time is right for me to step away and focus on myself and my family,” said Dreiling, who was named Dollar Tree CEO in January 2023. “Having worked side by side with [Creedon], I am confident in his strong leadership, deep passion for our business, and ability to create value.”

Dreiling previously served as chairman and CEO of competitor Dollar General. He joined Dollar Tree months after the retailer underwent a massive C-suite shakeup. 

It’s been a tumultuous year for Dollar Tree.

In March, the Chesapeake, Va.-based retailer announced it planned to close 1,000 stores, including 600 Family Dollar locations, during the first half of 2024. Dollar Tree also eliminated 54 corporate positions following the announcement of the 1,000-store closure.

The planned closures resulted in fourth quarter charges totaling more than $2 billion.

In June,, the company announced plans to undertake a strategic review of its store portfolio, which could culminate in a potential sale of the chain or spinoff of the company. 

“The Company and its advisors continue to make good progress, and the process is moving forward as planned,” the retailer said Monday in a prepared statement.  

The company reported a net loss of $1.71 billion for the 14-week fourth quarter, which ended Feb. 3, and a net loss of $998.4 million for the fiscal year.

After rebounding in Q1 2024, Dollar Tree stumbled again in the second quarter, as same-store net sales came in below expectations with a loss of 0.7% year over year at the enterprise level. Net sales increased just 1.3% for Dollar Tree, while they dropped 0.1% for Family Dollar vs. Q2 2023.

Also in June, the Food and Drug Administration said Dollar Tree kept recalled applesauce pouches on the shelves for months.