NEW YORK - Dollar Tree is taking critical steps to improve its financial performance and geographical footprint, unveiling plans to close nearly 1,000 stores across its popular Family Dollar banner.

“Persistent inflation and reduced government benefits continue to pressure the lower-income consumers that comprise a sizable portion of Family Dollar’s customer base,” noted Chief Executive Officer Rick Dreiling on a recent call with analysts.

As reported by CNN, Family Dollar is set to close a total of 600 locations this year, and 370 over the next several years as the leases expire. Dollar Tree will also close 30 of its banners as leases expire.

Family Dollar currently has around 8,000 stores across the United States, with the closure of these nearly 1,000 locations improving the company’s overall profitability. In recent years, the chain has closed hundreds of Family Dollar stores.

Dollar Tree purchased Family Dollar for $8.5 billion in 2015, according to the source, aiming to grow its customer base and reduce costs while elevating its standing among other discount retail chains such as Dollar General.

We will keep an eye on this evolving retail footprint, so be on the lookout for our next update.