Currently, the company is "closing the doors" of its business and has reached an agreement with a financial services company. The company's stores in California, Arizona, Nevada and Texas will gradually begin to sell merchandise, fixtures, furniture and equipment, and dispose of real estate it owns or leases. Some stores will close as early as April 5, and all stores will be closed in the next few months.
Another well-known german democratic republic leads discount retailer in the United States, D, saying that after suffering a significant quarterly loss, it plans to close 1,000 stores in the next few years, including 600 Family Dollar brand stores, to restructure its business. In the three months ending February 3, Dollar Tree's net loss reached US$1.71 billion.
After launching in the United States in September last year, Temu successfully opened up the market by using various low-price marketing strategies. By the end of the year, Temu had occupied about 17% of the market share in the U.S. discount retail category. Although it was still lower than Dollar General and Dollar Tree, Dollar General's market share had dropped from 57% in January 2023 to 43% in November, a drop of 14 percentage points; Dollar Tree's market share dropped from 32% to 28%, a drop of 4 percentage points.
Dollar General's stock price fell 50% in 2023, while Dollar Tree fell 24%. Michel Maloof, head of marketing at Earnest Analytics, believes that "Temu's lower prices on consumer goods and household goods pose a greater threat to physical discount stores."