Family Dollar will close 390 stores nationwide and will sell goods for $1

The owner of Family Dollar stores specializing in the sale of goods to $10, decided to resort to radical measures to exit from the financial crisis.

The company announced the closure of 390 outlets in various regions of the United States. In addition, another 200 stores will change the profile as part of the network Dollar Tree. This retail giant acquired for $8.5 billion Family Dollar in 2015.

The merger of two major retail chains have had mixed results. On the one hand, Dollar Tree increased its client base, on the other – are faced with falling demand for goods FD. Competition with such giants as Walmart and Dollar General affected the financial position of the company and the newly acquired network proved to be too heavy a load.

The company owner announced the closure of 390 outlets in various regions of the United States. Photo: Youtube

This year, the shareholders criticized the deal to buy Family Dollar. They believe that the company overpaid for the trade network, putting himself at risk. For this reason, the Dollar Tree management has developed an aggressive plan of reform. Nearly 600 stores will be derived from the structures Family Dollar. 200 of these outlets will sell goods DT, and the 390 will close.

This is not the first time the company is forced to reduce the number of stores for Family Dollar. In 2018, has been closed 120 outlets. However, the desired effect is not brought. Now, the reform plan provides for more radical steps.

In addition to the closure and conversion of hundreds of stores, the changes will affect existing outlets for Family Dollar. Many of them will be the division of the Dollar Tree where all items are sold at $1.

How effective will such a strategy, time will tell. While the shareholders do not share the optimism of the leadership retail chain Dollar Tree.

Struggle for survival: the shopping network Family Dollar will close about 400 stores updated: March 6, 2019 author: Paul cat
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