Dive Brief:
- Dollar Tree announced that Jason Nordin is the new president of the company’s Family Dollar banner. Nordin will play a key leadership role as the company undergoes a formal review of strategic alternatives, the company said in a Wednesday press release.
- Jocelyn Konrad is now chief of Dollar Tree stores and enterprise store operations. In that capacity, Konrad will oversee all stores under the company’s namesake banner, along with enterprise store operations services.
- Dollar Tree Inc. also said it promoted Steve Schumacher to chief people officer. Schumacher had been serving in that position on an interim basis for the past six months. He will lead all human resources functions for Dollar Tree and Family Dollar.
Dive Insight:
This round of leadership changes come just over a week after CEO Rick Dreiling resigned from his position and left the company, citing health issues. Dreiling had led the company for about two years. Micheal Creedon, Dollar Tree’s chief operating officer, was named interim CEO.
Dollar Tree’s consolidated second-quarter net sales rose 0.7% year over year to $7.4 billion. Same-store sales at the company’s namesake banner rose 1.3%, but were flat at Family Dollar. For the first nine months of the year, Family Dollar’s net sales as a standalone banner were nearly flat, falling less than 1% to $6.77 billion from $6.83 billion a year ago.
In March, the company said it plans to close 600 Family Dollar stores this year, 370 more under that banner in the coming years and 30 Dollar Tree stores. Creedon said during a September earnings call that closing the under-performing Family Dollar stores was “having the intended impact.”
The company said it incurred over $6 million in costs resulting from its closure of about 110 Family Dollar stores in Q2. It expects to close 45 more stores during its 2024 fiscal year as part of its portfolio review.
Chief Financial Officer Jeff Davis said during the same earnings call that options under consideration for Family Dollar’s future include involving “outside parties” and a go-forward plan that the company could execute in-house, according to a call transcript. The company previously said the options could include a sale or spin-off of Family Dollar.
Nordin has over 20 years of business development and operational experience. Before joining Dollar Tree just over a year ago, he was chief operating officer at convenience center and fuel supplier Pilot Company. In that capacity, he led 23,000 people who support the company’s approximately 650 travel centers and quick-serve restaurants in the U.S. and Canada.
“In his time overseeing the Dollar Tree banner, Jason has shown a deep commitment to both people and performance, which has not only strengthened our store operations, but has also fostered a culture rooted in our core values,” Creedon said. “Jason’s operational expertise, business agility, and financial acumen will be instrumental in guiding the next chapter for Family Dollar.”
Konrad has more than 30 years of experience. Before joining the company last September, she was executive vice president and chief pharmacy officer at Rite Aid.
