Discount retailer Family Dollar is set to close a significant portion of its stores in a strategy to improve profitability. The company announced that approximately 600 Family Dollar stores will close in the first half of fiscal 2024. Additionally, another 400 stores (370 Family Dollar and 30 Dollar Tree) will close gradually as their leases expire.
Reasons for the Closures
A company spokesperson detailed the decision-making process behind the closures, stating, “It was their location, the competitive environment, the quality of the facility, the proximity to the competition. There were many, many, many factors.” The company aims to focus on stores with a higher potential for success.
The spokesperson also emphasized the hope to transfer sales from closed stores to nearby operating locations.
The company believes that closing these unprofitable stores will “unlock meaningful value at the enterprise level.” However, they estimate an annual net sales loss of approximately $730 million due to the closures.
Community Impact
The closure of Family Dollar stores is more than a corporate decision; it has real implications for the communities they serve.
According to Dominick Miserandino of RetailWire, these stores often represent the only retail option in certain areas, providing both jobs and essential goods to local residents.
“These communities are dependent on these stores,” Miserandino emphasized to CBS News. The loss of Family Dollar could leave a void that would be hard to fill, affecting both employment and access to affordable goods.
Corporate Strategy
Dollar Tree’s acquisition of Family Dollar for over $8 billion nearly a decade ago was a strategic move to expand its footprint in the discount retail market.
However, the decision to close stores follows a “comprehensive review of our store portfolio,” according to a company email to CBS MoneyWatch. This review aimed to identify underperforming locations and reinvest resources into improving store standards and promoting growth. Despite the closures, the company has not released a comprehensive list of affected stores.
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Family Dollar closing list 2024
The announcement has led to a flurry of local media reports on specific closures, with many stores offering significant discounts of up to 50% off to clear inventory.
Among the known closures are locations in Alabama, Florida, Illinois, Kansas, Mississippi, Missouri, Nebraska, New Jersey, North Carolina, Ohio, South Carolina, Virginia, and West Virginia. These closures, listed with specific addresses and closing sales, reflect the broad impact of the company’s decision across the United States.
