Family Dollar Closing 370 Stores, Cutting Staff and Growth Projections
By Mark Heschmeyer via CoStar News
After announcing declining sales and lower profits for the second quarter, discount retailer Family Dollar Stores Inc. said it plans to close 370 stores and slow the pace of new store growth. The retailer also said it plans to cut prices on many items in its stores in hopes of attracting more shoppers.
“Our second quarter results did not meet our expectations,” said Howard R. Levine, chairman and CEO, who cited higher than expected promotional costs and more financially constrained consumers during the 2013 holiday season along with severe winter weather for its disappointing results.
The company said it initiated an in-depth business review to identify opportunities to increase operational efficiencies.
“While this business review is ongoing, we are taking immediate, strategic actions to improve our performance,” Levine said. “First, we have made a significant investment to lower prices on about 1,000 basic items. Second, we are reducing our cost structure through the optimization of our workforce. Third, we will close approximately 370 underperforming stores.”
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