Family Dollar to Close Nearly 400 Stores Nationwide!
Who would have ever thought? Even during a recession we would never believe that the Family Dollar chain would be impacted. However, it looks like the mega discount chain store is looking to close 390 stores this year in what they hope will help them sustain long term.
Family Dollar which lures customers with items usually $10 or less is struggling in sales. Currently Family Dollar operates 8,000 stores nationwide and is owned by the Dollar Tree. The Dollar Tree sells their items for $1 and operates 7,000 stores respectively.
Dollar Tree bought Family Dollar in 2015 for $8.5 billion. The Two brands hoped that by joining forces, that their customer base would grow along with them and compete with rivals Dollar General and Walmart. However, that doesn’t seem to be the case.
After the merger Family Dollar struggled causing Dollar Tree’s stock to fall. According to a recent article in CNN, an activist investor heavily pressured the company earlier this year to dump the ailing Family Dollar line and start selling Dollar Tree merchandise for higher prices.