Family Dollar, which has nine stores in Kansas City, Kan., announced today it would close about 370 underperforming stores in the second half of fiscal 2014.
The store has about 8,000 stores in 46 states, according to company information.
Making the announcement today, as the second quarter financial report was released, Family Dollar officials stated that net sales for its stores were down slightly in the second quarter of the year, $2.7 billion as compared to $2.9 billion in 2013.
Company officials cited severe winter weather as part of the reason for slow sales. Also, the 2013 holiday season was described as a “more promotional competitive environment and a more financially constrained consumer.”
Besides closing stores, the company announced it was lowering prices on 1,000 basic items; reducing costs by reducing its workforce; and slowing planned growth of new stores.
Instead of opening 525 new stores as planned in 2015, the store now plans to open 350 to 400 new stores, according to the report. The company’s fiscal report is online at http://corporate.familydollar.com/pages/family-dollar-2q-fy14-earnings.aspx.