The retail company expects to save up to $45 million as it looks to bounce back from a rough winter by shuttering hundreds of stores, cutting an unspecified number of jobs and slashing prices on nearly 1,000 items
Family Dollar said Thursday it will close about 370 stores and lower prices on roughly 1,000 items amid dropping sales.
The company, which took in $2.7 billion in sales in the second quarter, down from $2.9 billion a year earlier, also said it will cut jobs, without specifying how many. The measures are expected to boost profits by $40 to $45 million.
Like other stores in its category, Family Dollar has struggled to hang on to customers gained during the recession, particularly during this year’s cold winter. Customers are also buying less.
Family Dollar, which has about 8,100 stores in 46 states, said it plans to open 350 to 400 stores next year, down from 525 in fiscal year 2014.