Dollar Tree Appoints Michael Creedon as Permanent CEO

(Reuters) – Dollar Tree announced on Thursday that interim CEO Michael Creedon would take on the role permanently, appointing an insider to lead a turnaround of the dollar-store chain facing weak demand and intense competition.

Creedon, who worked at auto parts retailer Advance Auto Parts (NYSE:AAP) for nearly a decade before joining Dollar Tree (NASDAQ:DLTR) in 2022, was named interim CEO last month. His appointment followed the decision of industry veteran Rick Dreiling to step down after a two-year stint due to health concerns.

Dollar Tree's shares rose by 2% in premarket trading on Thursday, although they have lost over half their value so far this year, as per the last close.

The Chesapeake, Virginia-headquartered company initiated a turnaround effort this year, which included shutting down 970 Family Dollar stores and exploring options, including a potential sale of the banner. Additionally, Dollar Tree appointed former travel center chain Pilot Company's executive Jason Nordin as president of the Family Dollar banner to lead the review.

Earlier this month, Dollar Tree exceeded expectations with its third-quarter results and announced that Chief Financial Officer Jeff Davis would step down after roughly two years in the role.

Dollar stores have faced challenges as Walmart (NYSE:WMT) and other big-box retailers, along with online sellers like PDD Holding's Temu, offer significant discounts to attract consumers looking for the best deals to stretch their budgets. Peer Dollar General (NYSE:DG) also warned that aggressive promotions during the holiday quarter could negatively impact its margins.