(Reuters) -Dollar Tree said on Thursday interim CEO Michael Creedon would take on the role permanently, tasking an insider to lead a turnaround of the dollar-store chain facing weak demand and intense competition.
Creedon, who worked at auto parts retailer Advance Auto Parts (NYSE:AAP) for nearly a decade before joining Dollar Tree (NASDAQ:DLTR) in 2022, was named interim CEO last month.
His appointment came after industry veteran Rick Dreiling decided to step down after a two-year stint due to health concerns.
Dollar Tree's shares were up 2% in premarket trading on Thursday. They have lost a little over half of their value so far this year, as of the last close.
The Chesapeake, Virginia-headquartered company launched a turnaround effort this year that involved shutting 970 Family Dollar stores and exploring options, including a possible sale for the banner.
Dollar Tree also named former travel center chain Pilot Company's executive Jason Nordin as president of the Family Dollar banner to lead the review.
Earlier this month, Dollar Tree beat third-quarter results, and said Chief Financial Officer Jeff Davis will step down after roughly two years on the job.
Dollar stores have struggled as Walmart (NYSE:WMT) and other big-box retailers, as well as online sellers such as PDD Holding's Temu, offer steep discounts to appeal to consumers seeking the best deals to stretch their budgets.
Peer Dollar General (NYSE:DG) also warned this month that steep promotions during the holiday quarter could pressure its margins.