Family Dollar plans store closings and job cuts in hopes to boost the drooping sales in stores nationwide. This comes on the heels of a six percent drop in revenue. The company revealed today that Family Dollar is putting 370 under-performing stores on the chopping block. This will coincide with an unknown number of job cuts, according to ABC News on April 10.
The good news for consumers is that Family Dollar plans to drop prices on about 1000 basic items to entice shoppers through their doors. This was good news to Family Dollar customers who may have noticed the increase in some of their everyday household items in the recent past.
This is surprising news considering new Family Dollar stores are under construction in some areas of the country. One such store is in Southwick, Massachusetts, which is barely four miles away from the Family Dollar Store in Westfield, Massachusetts.
The company aimed to open about as many new stores as it did for the fiscal year of 2014, which was 525. This year they expect to cut the opening of new locations back to about 350 to 400. This is good news for the consumers who shop at Family Dollar to stretch their household budget.
Family Dollar was the store for saving big on cleaning products, laundry detergent, paper goods and many name brand products. Batteries were one of the items that they were notorious for selling at a price that undercut all the other discount stores.
With the remote controls for all the new technology, AA and AAA batteries are now a staple in every house, right up there with milk and bread. This was one of the items that shoppers stocked up on when visiting the Family Dollar store, but the battery prices seem comparable to grocery store prices today.
The same goes for many of the brand name cleaning products. The once astronomical savings are about as comparable today as you’d find during a supermarket sale. Cutting the prices on the everyday household items will certainly entice the shoppers into the store and they will probably come more often.
While prices are going sky-high everywhere today, Family Dollar seemed to be the place to go to see a sizable savings compared to other stores. Paper goods like toilet tissue, Kleenex and paper towels were once lower than the supermarket prices, again today they seem comparable unless there is a sale.
Family Dollars declining sales for the fiscal second quarter prompted this store closing and job cuts. Howard Levine, Family Dollar chairman and CEO, said in a statement Thursday morning: “Our second quarter results did not meet our expectations,” according to Forbes today.
The quarter ended on March 1, so much of the sagging sales had to do with the winter weather that hampered retail and grocery sales across the nation. The winter storms brought higher than expected maintenance bills and utility bills along with them.
It also disrupted deliveries and closed stores, as the winter weather played havoc on many businesses. While times are tough for a lot of families today, the basics are something you just can’t cut back on. Most shoppers go where the price is the best and it sounds as if Family Dollar plans to stay in the running under that category.
If the Family Dollar store regroups, as this plan seems to indicate, then they should still be that store on everyone’s list for household goods because they’re the place that helps you stretch your household budget. Family Dollar boosts 8,100 stores in 46 states and it anticipates that number to rise by the hundreds each year.