Family Dollar to close almost 400 stores

Daniel Fowler
March 7, 2019

Family Dollar sells items under $10. That includes roughly 8,000 Family Dollar stores.

The company said Wednesday that it's seeking rent concessions from landlords at the 84 stores closed late past year and if it doesn't get them, it'll speed up the pace of store closings to as many as 390 locations.

The Atlanta Journal Constitution reports that the chain, which is based in Matthews, North Carolina, will close underperforming stores and cut prices on almost 1,000 basic items.

"Our results demonstrate the increasing strength of the Dollar Tree brand, and accelerated progress on the Family Dollar turnaround, as Family Dollar delivered its strongest quarterly same-store sales growth of the year". It will also re-brand around 200 stores as Dollar Tree this year.

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"Sales for the quarter were strong", Dollar Tree President and CEO Gary Philbin said in a statement. There are several Family Dollar locations in Northwest Arkansas and the River Valley, as well as in eastern Oklahoma. It also said it's open to testing again new prices at Dollar Tree, where all items are priced under a dollar.

Additionally, Dollar Tree says it plans to install adult beverages in approximately 1,000 stores and expand freezers and coolers in approximately 400 stores. Meanwhile, Dollar Tree had a 3.2 percent increase for that figure.

Other Family Dollars will keep the name, but will be stocked with $1 Dollar Tree merchandise and alcohol sections. The total number of stores closed may change depending on the company's ability to achieve material rent concessions from landlords.

The company took a $2.73 billion charge against its Family Dollar business during the fourth quarter of fiscal 2018 that ended February 2, 2019. "Annual savings for the Dollar Tree banner are estimated to be more than $60 million in indirect procurement (including capital expenditures), and more than $70 million in initial merchandise cost".

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