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Family Dollar CMO out, continuing leadership turnover trend
Parent Dollar Tree has seen much C-suite movement this past year
3 Min Read
Family Dollar Chief Merchandising Officer Lawrence Gatta Jr. will leave the company around the end of fiscal year 2024.Getty Images
Family Dollar Chief Merchandising Officer Lawrence Gatta Jr. will leave the company around the end of fiscal year 2024, Dollar Tree announced Friday. Gatta has held the role since May 2022.
Biggest news for grocery?
Dollar Tree, which owns Family Dollar, continues to work through a shift in leadership. In November, Dollar Tree Chairman CEO Rick Dreiling announced his resignation, citing health reasons. He previously served as chairman and CEO of competitor Dollar General and joined Dollar Tree three months after the retailer underwent a massive C-suite shakeup. Two weeks after Dreiling moved on, Dollar Tree promoted three executives, including Jason Nordin to president of Family Dollar Stores. Dollar Tree has not named Gatta’s replacement.
Leadership took another hit in early December when CFO Jeff Davis announced his resignation. Michael Creedon, who became the interim CEO when Dreiling left, was named to the position permanently in mid-December. In the meantime, Dollar Tree continues to try to figure out what it wants to do with its Family Dollar brand and has not ruled out a potential sale there
Why it matters
The last year has been a struggle for dollar stores as they try to find their place in a new landscape where shoppers continue to battle inflation. Shares for both Dollar Tree and Dollar General have sunk more than 40% in 2024 while the S&P has increased 26% over that same period. Dollar Tree announced in early 2024 it will be closing 1,000 stores. Meanwhile, Dollar General, which made 13 executive moves in late November, has been working hard to change its image behind its new Back to Basics strategy. The Goodlettsville, Tenn., retailer has been working down inventory and dispensing with self-checkout so associates can focus more on the customer.
Dollar General will also be refreshing the look of some stores without slapping down major cash to do so through “Project Elevate”—the retailer’s performance boosting plan. These projects will include nearly all the same assortment updates as full remodels, other than cooler expansion and the addition of produce. Both Dollar General and Dollar Tree have been in the shadow of Walmart when it comes to home delivery, at-store pickup, and ecommerce. However, Dollar General began testing same-day home deliveries in about 16,000 stores in November.
By the numbers
Dollar General is projecting net sales growth for the full fiscal year in 2024 in the range of about 4.8% to 5.1%, a slight decrease from initial projections of 4.7% to 5.3%
Dollar Tree cut its full-year projection earnings in September during its second quarter earnings call. The Chesapeake, Va.-based retailer cut its full-year consolidated net sales outlook to range between $30.6 billion to $30.9 billion. The initial guidance was $31 billion to $32 billion
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