Family Dollar to close 370 stores; Q2 sales, earnings down

[Sherman A1]

Family Dollar Stores said Thursday that it would close 370 underperforming stores and slow plans for new store growth as sales and earnings plunged during the fiscal second quarter.

The Matthews, N.C.-based discounter also said it would make a "significant investment" to lower prices on 1,000 items in stores and would move to reduce costs through layoffs at corporate headquarters. The company said sales for the quarter ended March 1 declined by 6.1% to $2.7 billion, while same-store sales fell by 3.8%. Gross profits were down 6.7% to 33.2% of net sales; and net earnings decreased by 35.1% to $90.9 million. The company said a highly promotional holiday season, constrained consumer spending and poor weather affected results.


Read More: http://supermarketnews.com/retail-financial/family-dollar-close-370-stores-q2-sales-earnings-down#ixzz2yomGYciH''

Could be that there are simply too many dollar stores around diluting the market place for that sector?

[Duckhunter935]

1. does not help

unemployment extension has been denied

[Demeter]

2. When you limit your marketing price like that, there is no upside

you can only increase profits by increasing sales....and not only are there fewer dollars out there to buy with due to strangling the working class, there are fewer items that can be produced at such a price, due to juicing the profits for the 1% AND the inflation (that nobody can see, so it doesn't count).

How much crap does America need, even if it only costs a dollar? Americans need good food, good durable clothing, appliances that can be repaired, not tossed into a landfill.

You can't make unlimited profits by screwing people, UNLESS there are always new suckers with cash.

This business model has gone as far as it can go.

[840high]

3. In my area Family Dollar prices keep

going up. I switched to Dollar Tree - everything is a dollar.

[femmocrat]

4. I have found the same articles cheaper in the supermarket in the same strip mall as Family Dollar.

Family Dollar is no bargain. I like Dollar Tree too, but none nearby anymore. They opened a much bigger store, but further away.

[Sherman A1]

5. Agreed

Prices at most of the local "Dollar" stores have been going up and up. They are no longer a bargain for their shoppers. You can find the same products on the shelf at the local grocery and Target for the same or lower prices. Shoppers that go to these store with limited selection and alleged lower prices are looking for the lowest prices they can get and do shop around.

[840high]

6. T give you an example: box

of Scottie tissue

Dollar Tree 1.00
Family D 1.49

I can get them at Kroger when on sale for $1.00, too.