Family Dollar closing 370 stores
Family Dollar, which operates several stores in the Quad Cities area, announced it will close hundreds of underperforming stores.
The announcement came on the heels of the company’s second-quarter fiscal results, which were lower than they expected according to Family Dollar Chairman and CEO Howard Levine.
“The 2013 holiday season was challenged by a more promotional competitive environment and a more financially constrained consumer. In addition, like many retailers, our second quarter results were significantly impacted by severe winter weather, which resulted in numerous store closings, disrupted merchandise deliveries and higher than expected utility and store maintenance expenses,” Levine said.
Financial records show Family Dollar opened nearly 500 new stores in the past calendar year, growing from 7,675 to 8,138 total stores. A corporate statement said they planned to slow growth in fiscal 2015, with plans now to open 350 to 400 new stores.
The company also planned to lower prices on about 1,000 “basic” items. The company forecasted their plan to close 370 stores, and staff reductions that result from the closings, would save them $40- to $45-million.
The closures were expected to begin in their fiscal third quarter, during the summer of 2014. Family Dollar did not yet announce which stores would close.
Family Dollar operates two stores in Davenport, two stores in Rock Island, one store in Moline and one store in East Moline.