TIME Retail

Family Dollar Will Close 370 Stores As Sales Drop

The store front of a Family Dollar Stores Inc. location in Mansfield, Texas, Jan. 7, 2014.
Ben Torres—Bloomberg/Getty Images The store front of a Family Dollar Stores Inc. location in Mansfield, Texas, Jan. 7, 2014.

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.

Tap to read full story

Your browser is out of date. Please update your browser at http://update.microsoft.com


YOU BROKE TIME.COM!

Dear TIME Reader,

As a regular visitor to TIME.com, we are sure you enjoy all the great journalism created by our editors and reporters. Great journalism has great value, and it costs money to make it. One of the main ways we cover our costs is through advertising.

The use of software that blocks ads limits our ability to provide you with the journalism you enjoy. Consider turning your Ad Blocker off so that we can continue to provide the world class journalism you have become accustomed to.

The TIME Team