Dollar Tree CEO Rick Dreiling steps down, citing health concerns
Dollar Tree appointed Chief Operating Officer Michael Creedon Jr as interim CEO
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Dollar Tree CEO Rick Dreiling abruptly stepped down from his position at the helm of the beleaguered retail chain, citing health concerns as the reason for his resignation.
"With my health presenting some new challenges over the past two months, the time is right for me to step away and focus on myself and my family," Dreiling said in a statement.
Dreiling served as the discount retailer's chief executive since 2022. Analysts believed he played a key role in reviving the business. His last day on the job was Sunday.
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Dollar Tree appointed its chief operating officer, Michael Creedon Jr., as interim CEO while the board conducts a search process for a permanent replacement.
Customers shop at a Dollar Tree store in Chicago on Aug. 2, 2022. (Scott Olson/Getty Images / Getty Images)
Telsey Advisory Group analysts led by Joe Feldman said in a Tuesday note that the departure reduces their confidence in the company and limits its "visibility on the strategy and execution ahead." Telsey lowered its 12-month price target for the company.
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"We believe Mr. Dreiling’s experience in the dollar store industry played a key role in understanding the business, designing the strategy for both banners, and taking bold actions to revive 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 2025."
A woman shops at the 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, has already been in the midst of trying to restructure its business.
In June, the company initiated a formal review of strategic alternatives for the company's Family Dollar business segment, including exploring a potential sale or spinoff of the banner.
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That came months after the company announced plans to close nearly 1,000 Family Dollar stores in the U.S. after suffering a significant quarterly loss.
Dollar Tree Inc.
The company is facing several issues. Most notably, "consumer spending trends for the core lower income households remain challenging and competition is intense from the likes of Walmart and online retailers," Feldman wrote.