Dollar Tree Replacing CFO, Other Execs

Discount retailer Dollar Tree says it is replacing its chief financial officer and other key executives, a move that comes following a March settlement with an activist investor that changed the makeup of its board.

As Reuters reported Tuesday (June 28), that settlement added seven new directors to the board, among them former Dollar General Corp Chief Executive Officer Rick Dreiling and investor Paul Hilal, whose firm Mantle Ridge drove the shakeup.

Last year, Mantle Ridge — one of the biggest investors in Dollar Tree — urged the company to “refresh” its board and rethink its business strategy, arguing its stock price was trailing those of its competitors.

Reuters notes that the chain has seen its shares jump 12% this year with investors anticipating consumers turning to dollar stores to combat inflation. As PYMNTS reported earlier this month, merchants and analysts are predicting that a new cohort of bargain hunters — who wouldn’t otherwise patronize dollar stores — will now begin to do so.

See also: Retailers Tout Value and Convenience as Consumers Brace for Recession

While lots of consumers — especially those with lower incomes — shop at deep discount stores no matter what the prevailing economic conditions look like, a growing number of merchants and analysts are predicting that a new tranche of bargain-seeking customers, who might not normally seek out such deals, will begin to do so.

“Value and convenience are more important than ever to our shoppers and the communities we serve,” Dollar Tree CEO Michael Witynski told investors during the retailer’s Q1 earnings call.

“We are taking the necessary actions now to position ourselves for accelerated growth in what I view as the most attractive sector in retail, especially in the current economic environment,” he added, noting the chain plans to capitalize on the trends with investments to improve the shopping experience at its 16,000 stores.

Read more: Dollar Stores Soar as ‘Value and Convenience’ Tap Into Consumer Trade-Down

Wampler had served as CFO for almost 14 years. He will leave his job when the company names a successor and will remain with Dollar Tree as an adviser until next April, according to a company press release. In addition, Chief Operating Officer Thomas O’Boyle and three other executives “are no longer with the Company,” per the release, which added, “Searches for successors are underway, and the Company is in advanced discussions with several candidates for certain positions.”

Executive Chairman Rick Dreiling said in the release that the board was fully aligned with Witynski “that now is the right time to bring in new leadership to ensure Dollar Tree remains on a strong trajectory.”