Store Outlets Set To Be Closed By Family Dollar
Around 370 outlets of the Family Dollar stores that have not been performing well will be closed, according to the discount retailer. In addition to the closure of the stores, prices of around one thousand basic items will be reduced while jobs will be cut. These are the result of declining sales and disruptions in the business due to bad weather.
Howard Levine, CEO of the company, revealed the result for the second quarter came up short of expectations and the competitive environment and financially-constrained consumer made the holiday season of 2013 challenging for the company.
The retail chain is based in Matthews, North Carolina and has around 8,100 stores spread in 46 states.
The changes were revealed after a strategic review by the management of the company. It will also result to an increase of around $40 to $45 million of annual operating profit for the Family Dollar store company. Shares of the company went down to $58.96 or by around 0.19 percent.
The company is also aiming to delay the opening of new stores in the 2015 fiscal year in another attempt at reducing expenses. Around four hundred stores were planned to be opened for the 2015 fiscal year while 2014 fiscal year would have 525 new stores opening.
The net income of the company in the 2014 second fiscal quarter declined by 35 percent compared to the same period last year at $90.9 million.
Annual sales of the company have also declined by six percent compared to the same period last year. Harsh winter weather also affected the performance of stores in the quarter, according to the Family Dollar company.