Dollar Tree names interim CEO as Rick Dreiling steps down citing health issues
KB Advisory Founder and President Kristin Bentz analyzes the retail landscape as prices rise and job developers decline in ‘Making Money.’
Dollar Tree CEO Rick Dreiling abruptly resigned from his position leading the faltering stores, citing health issues as the reason for his resignation.
“Since my life has new challenges in the past two months, it is the right time for me to step down and focus on myself and my family,” Dreiling said in a statement.
Dreiling has served as the discount retailer’s CEO since 2022. Analysts believe that he has played an important role in the revival of the business. His last day at work was Sunday.
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Dollar Tree has named its chief operating officer, Michael Creedon Jr., as interim CEO while the board conducts a search for a permanent replacement.
Customers shop at a Dollar Tree store in the Austin area on August 02, 2022 in Chicago, Illinois. (Photo by Scott Olson/Getty Images) / Getty Images)
Telsey Advisory Group analysts led by Joe Feldman said in a note Tuesday that the move reduces their confidence in the company and reduces “its visibility into future strategy and execution.” Telsey lowered its 12-month target price for the company.
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“We believe Mr. Dreiling’s experience in the dollar store industry played a major role in understanding the business, designing the strategy for both banners, and taking strong steps to revitalize the business,” Feldman wrote.
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 into 2025.”
A woman shops at a Dollar Tree store in Alhambra, California, on Dec. 10, 2021. (FREDERIC J. BROWN/AFP via Getty Images / Getty Images)
Dollar Tree, which cut its annual forecast in September, is already in the midst of trying to restructure its business.
In June, the company began a formal review of strategic alternatives for the Family Dollar business segment, including exploring a potential sale or banner exit.
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That came months after the company announced plans to close nearly 1,000 Family Dollar stores in the US after posting heavy quarterly losses.
This company is facing many problems. Most notably, “consumer spending patterns for low-income households remain challenging and competition is intense from the likes of Walmart and online retailers,” Feldman wrote.
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