Friday, April 11, 2014

Family Dollar to close 370 stores, slash prices; company says bad winter hurt sales

It was only last year that dollar stores, a staple in rural areas, were experiencing a boom, as shoppers sought cheaper alternatives to the ever-increasing prices of grocery and department stores. The boom appears to be over for Family Dollar, which announced Thursday it is closing 370 stores "in response to falling sales and business disruptions caused by bad winter weather," Roger Yu reports for USA Today. The chain, which has 8,100 stores in 46 states, also plans to cut prices on about 1,000 items. (Associated Press photo) 

The move "could generate about $40 million to $45 million in annual operating profit benefit" for the company, which said its net income for 2014 fiscal second quarter, which ended March 1, was 35 percent lower than the same quarter last year, Yu writes. Annual sales were down 6 percent. "Performance was affected by one fewer week of business during the quarter and disrupted merchandise deliveries caused by harsh winter weather, the company said." (Read more)

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