Dollar Tree plans to close approximately 75 stores this year as part of its 2026 strategy to modernize its more than 9,400 locations. CEO Michael Creedon recently admitted that while the percentage of stores falling below internal standards has dropped from 42% to less than one-third, the chain is still working to improve store quality.
Dollar Tree is attempting a massive operational reset, acknowledging that a significant portion of its physical footprint does not meet the company’s own expectations. The retailer is currently balancing a contraction of underperforming sites with an expansion plan, aiming to open about 400 new locations in 2026 while shuttering roughly 75 others, according to WKRC.
Michael Creedon’s “Substandard” Store Metrics
The scale of the problem became public during the company’s first-quarter earnings call and a previous investor presentation. CEO Michael Creedon faced questions from Scot Ciccarelli of Truist Securities regarding gold store goals and the volume of locations that were deemed substandard by the company’s own metrics. Ciccarelli asked, “So you talked about making progress on the initiatives you provided at Investor Day. I think one of the ones that really stood out was your gold store goals and how the majority of your stores basically are substandard by your own metrics. So can you help us understand the progress that you’ve already made on improving the store standards?”
Creedon clarified that the number of stores below standard was 42% at the time of the Investor Day presentation. And just to correct, I think 42% is what we showed. So it wasn't the majority were below our standards. But if the average retailer is chasing 15% to 20% of their stores, we were chasing 42% below our standard,
Creedon stated.
Creedon noted that this figure has since decreased to less than one-third. While he described this as a significant improvement, he admitted it is still not where we want it to be.
He described the challenge of managing 9,400 stores “and change,” noting that turning these big QE2s are hard to do,
though he expressed satisfaction with the progress made over the past year.
The Logic of the 2026 Modernization Strategy
Turning around a fleet of more than 9,400 stores is a logistical challenge Creedon compared to cleaning a house. He explained that as more stores reach the grand opening look and exceed internal standards, the remaining problematic locations become easier to manage due to the reduced volume of work.
Every room in your house is a mess, it takes longer to clean it. As you start cleaning room to room, it gets easier to clean up the kitchen, Creedon said
This strategy involves a mix of renovations and operational improvements to create a more consistent shopping experience. The company is prioritizing investments in stores that demonstrate the greatest long-term potential. While some locations have already closed according to retail tracking data, the company has not yet released a full list of the 75 stores slated for closure this year, and has not announced when the remaining closures will occur.
Comparing the “Admission” Playbook to Domino’s
A parallel was drawn to Domino’s 2009 Pizza Turnaround
campaign, where the chain shared brutal internal focus group videos on YouTube. In those videos, one woman stated, Domino’s pizza crust to me is like cardboard, another said, The sauce tastes like ketchup, and a third called it the Worst pizza I ever had.
The Advertising Research Foundation (ARF) has analyzed the Domino’s approach in a case study, stating that Admission is interesting. It’s humanizing. When a company admits it’s wrong, they begin to seem human, fallible, and vulnerable. Admission changes the perception of intent.
The ARF further noted that such admission can make what seemed like a deliberate act of greed or dishonesty instead looks like a mistake or bad judgment,
and that without admission of wrong, there can be no real reconciliation.
Current Store Status and Future Targets
Dollar Tree’s current trajectory focuses on shifting its store percentages closer to the industry average of 15% to 20% substandard locations.
| Metric | Investor Day Figure | Current Status |
| Percentage of Substandard Stores | 42% | Less than 33% (one-third) |
| Planned Closures (2026 strategy) | — | Approximately 75 stores |
| Planned New Openings (2026) | — | About 400 stores |
The company remains committed to the 2026 strategy of modernization, though the exact timing for the remaining closures of the year remains unannounced.
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