BusinessFamily Dollar announces closure of nearly 1,000 stores due to economic challenges

Family Dollar announces closure of nearly 1,000 stores due to economic challenges

In a move attributed to declining sales and economic challenges, Family Dollar, a subsidiary of Dollar Tree, has announced the closure of nearly 1,000 stores. The decision comes amid stubborn inflation, increased theft, and the conclusion of additional pandemic-era benefits from the federal government’s Supplemental Nutrition Assistance Program.

There are three Family Dollar stores in the District, and three Dollar Tree stores. 

Dollar Tree’s Chief Executive Rick Dreiling attributed the closures to the challenging macroeconomic environment. He noted that Family Dollar has faced more significant difficulties than its peers in the retail sector. While Dollar Tree reported a 6% increase in sales last year, Dollar General, another major player in the discount retail market, reportedly will release its quarterly earnings, having experienced a slight increase in sales and expansion of its footprint.

The acquisition of Family Dollar by Dollar Tree in 2015 was initially seen as a lifeline for the struggling chain, which had faced operational issues for years. However, challenges persisted, including maintaining store cleanliness and adequate stock levels. Last month, Family Dollar pleaded guilty and was punished with a fine and forfeiture totaling $41.675 million. The company will also be subject to stringent corporate compliance and reporting requirements for the next three years. U.S. Magistrate Judge Jerome T. Kearney presided over the case.

“As consumers, we have the right to expect that the food and drugs on store shelves are kept in clean, uncontaminated conditions,” remarked acting Associate Attorney General Benjamin C. Mizer.

Source: Washington Informer


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