Rick Dreiling has stepped down from his position as Chair and CEO of Dollar Tree. COO Michael Creedon Jr. has been named Interim CEO, and Edward Kelly III, lead Independent Director of the company’s board, has been named Chair. The retailer has embarked on a search for a permanent CEO that will include both internal and external candidates.
“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,” said Dreiling in a statement. “I have been honored to serve the customers and associates of Dollar Tree and Family Dollar since 2022. Having worked side by side with Mike, I am confident in his strong leadership, deep passion for our business and ability to create value.”
Dreiling expanded his responsibilities to include the CEO role in January 2023 when he was serving as the company’s Executive Chair. The discount retailer has struggled in recent months. For its Q2, which ended Aug. 3, 2024, Dollar Tree generated net sales of $7.37 billion, just 0.7% higher than the same period the previous year. A same-store sales increase of 0.7% was dragged down by Family Dollar, which saw a 0.1% decrease, compared to a 1.3% same-store sales increase for the Dollar Tree division.
Dollar Tree initiated a strategic review in June 2024 to consider options for its struggling Family Dollar banner, including the possibility of a sale or spinoff. Dollar Tree reiterated that this process is still ongoing. The retailer had announced in March 2024 that it would close approximately 600 Family Dollar stores by August.
New Interim CEO Creedon has served as Dollar Tree’s COO since joining the company in 2022, and his role expanded to include oversight of Dollar Tree and Family Dollar merchandising and supply chain in February 2024. Prior to joining the company, Creedon held several leadership roles at Advance Auto Parts for nearly nine years, most recently as EVP and President of U.S. Stores.
Kelly joined the Dollar Tree board in 2022 and was first elected Lead Independent Director in March 2022, followed by re-elections in 2023 and 2024. He is the retired Chair of the Institutional Clients Group of Citigroup and serves on the boards of Citizens Financial Group and MetLife.