Dollar Tree Inc., the Virginia-based company that operates Dollar Tree and Family Dollar, will close 1,000 stores in the next several years, the discount chain announced Wednesday.

Family Dollar will close 600 locations in the first half of 2024 and another 370 stores in the coming years as leases expire. The closures represent about 12% of all Family Dollar locations, according to reports.

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About 30 Dollar Tree locations will close as leases expire on the buildings.

The closures come after what the company described as a “comprehensive store portfolio optimization review,” based on current market conditions and individual store performance.

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“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains, and adjusted margin improvement across both segments,” Rick Dreiling, Chairman and Chief Executive Officer said in a statement. “While we are still in the early stages of our transformation journey, I am proud of what our team accomplished in 2023 and see a long runway of growth ahead of us.”

There are roughly 16,500 Dollar Tree and Family Dollar locations across the U.S.