There are a lot of job cuts and layoffs coming to the Family Dollar brand as about 370 stores are going to be closed. USA Today reported on April 10, 2014, that the budget-conscious retailer said that not only will Family Dollar layoffs and store-closings come, but there will be prices cut on 1,000 basic items as well.
This is all due to stores seriously under-performing and sales falling at rapid rates.The awful winter weather is looked at as one of the big reasons that sales have become so bad for Family Dollar stores.
"Our second quarter results did not meet our expectations," said CEO Howard R. Levine, in a statement. "The 2013 holiday season was challenged by a more promotional competitive environment and a more financially constrained consumer."
With shares of Family Dollar stock falling continuously, these layoffs and store closings are expected to bring profits back up considerably. It is expected that the changes could bring forth $40 million to $45 million in annual operating profit benefit.
Some more changes will be coming to Family Dollar as well, and all are expected to keep profits rising.
The company is going to slow down on opening new stores, and that is set to start with the 2015 fiscal year. Yes, around 370 stores are going to be closed, but it is due to their not meeting performance standards.
In the 2014 fiscal year, Family Dollar opened 525 new stores. For 2015, only 350 to 400 openings are planned.