• by Tanya Gazdik , November 5, 2024

Discount retailer Dollar Tree is losing CEO Rick Dreiling.

“Dreiling, who had just joined Dollar Tree as executive chairman in March 2022, said he is leaving for personal reasons,” according to CNN Business. 

“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,” Dreiling said in a press release. 

Dollar Tree, which also owns Family Dollar, appointed COO Michael C. Creedon as interim CEO and Edward J. Kelly as chairman. The company is searching for a permanent CEO, accoridng to CNN Business. 

“Dollar Tree also reiterated its forecast for the third quarter and said it was committed to complete the review of strategic options, which included a potential sale or spin off of its Family Dollar segment,” according to Reuters. “Discount retailers like Dollar Tree and Dollar General are facing stiff competition from retailers including Walmart, Target and PDD Holding's e-commerce platform Temu as they keep prices low to attract cost-conscious consumers.”

Shares of Dollar Tree, which are down about 53% this year, rose 7% in extended trading.

“Dreiling’s departure comes as Dollar Tree is navigating several business challenges,” according to Retail Dive. “They include a strategic review of its Family Dollar banner, plans to close about 1,000 stores — most of them Family Dollar locations — and financial performance that has fallen short of expectations.”

Dreiling’s exit reduces confidence in the company and limits its "visibility on the strategy and execution ahead,” said analysts with Telsey Advisory Group, led by Joe Feldman, according to Fox Business News. 

Feldman said that while Creedon is "well-suited" for the interim role, "the lack of a permanent CEO could impact key business decisions heading into the holidays and 2025."