Retail News Breaks Archives
Family Dollar closes stores, cuts payroll
April 10th, 2014
MATTHEWS, N.C. – Family Dollar Stores Inc. says it will pare payrolls and close about 370 underperforming stores as it seeks to improve its financial performance.
The announcement came as the nation’s second-largest dollar store chain posted a 35% decline in fiscal second quarter earnings, attributed in part to harsh winter weather.
Sales at stores open at least a year slid 3.8%, the company said. Sales of frozen food and tobacco were bright spots in the period.
Family Dollar also said it will slow the pace of new store openings beginning in fiscal 2015 to improve its return on investment. The chain in recent years has lagged its two main competitors, Dollar General Corp. and Dollar Tree Inc.
Earlier, the company said it was slashing prices on 1,000 items to help drive sales, following a disappointing first quarter in which it reported fewer customer transactions and a drop in average transaction size.
The retailer has said its core customer is a female head of household earning less than $40,000 a year and typically living paycheck to paycheck.
Family Dollar is second in size to Dollar General, with 8,100 stores in 45 states and Washington, D.C.