Dollar Tree CEO Steps Down

(Reuters) – Dollar Tree CEO Rick Dreiling has stepped down after nearly two years in the role. Operating chief Michael Creedon Jr. will replace him on an interim basis, the company said on Monday.

Shares of Dollar Tree, which are down about 53% this year, rose 7% in extended trading.

Dreiling also relinquished his position as chairman, with Lead Independent Director Edward Kelly being elected to take on the role.

Due to health challenges presented over the past two months, Dreiling decided to step away, according to a company statement.

The company is currently searching for a permanent CEO from both internal and external candidates.

Dollar Tree (NASDAQ: DLTR) reiterated its forecast for the third quarter and is committed to reviewing strategic options, including a potential sale or spin-off of its Family Dollar segment.

Discount retailers like Dollar Tree and Dollar General (NYSE: DG) are experiencing stiff competition from entities such as Walmart (NYSE: WMT), Target, and PDD Holding's e-commerce platform Temu, which aim to attract cost-conscious consumers by keeping prices low.

Earlier this year, Dollar Tree announced plans to close 970 Family Dollar stores. As of August 3, approximately 655 stores have been shuttered, with an additional 45 expected to close by the end of the year.