Dollar Tree CEO Dreiling steps down, citing health

Rick Dreiling stepped down Sunday as CEO and board chairman of Chesapeake-based Dollar Tree, effective immediately, the Fortune 500 discount retailer announced Monday.

Michael C. Creedon Jr., Dollar Tree’s chief operating officer since 2022, was named interim CEO. He previously held executive positions at Advance Auto Parts. Edward “Ned” Kelly III, the board’s lead independent director, has been named chairman of Dollar Tree’s board. Kelly is the retired chairman of Citigroup’s Institutional Clients Group.

“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 Monday. “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 came aboard as CEO in 2022, having served on Dollar Tree’s board and previously been CEO of competitor Dollar General from 2008 to 2015. The past year has held challenges for the chain, which saw a $1.7 billion loss in the fourth quarter of fiscal 2023, but numbers improved by the second quarter of 2024, reported in early September. Consolidated net sales increased 0.7% to $7.37 billion that quarter, compared to the second quarter of 2023.

“The entire Dollar Tree team is grateful to have worked so closely with Rick. Looking forward, we are well-prepared to help both banners reach their fullest potential,” Creedon said Monday. “We are excited about our current trajectory and are focused on delivering a successful holiday season. We will continue accelerating growth at Dollar Tree, and we remain focused on identifying the best path forward for Family Dollar.”

According to Monday’s announcement, Dollar Tree is still planning to complete a formal review of the Family Dollar segment of the business, which could include a potential sale or spin-off of the business. Third quarter 2024 financial results will be announced Dec. 4.