CHARLOTTE, N.C. – Family Dollar, the discount store said Wednesday it will close nearly 1,000 stores.
The decision comes after constant mismanagement and extremely poor work conditions which have tarnished the Family Dollar Brand.
Family Dollar, which is owned by dollar tree, was recently fined more than $40 million for a rat infestation at a warehouse that forced hundreds of stores to temporarily close.
With inflation at an all time, a general consumer pullback has impacted Family Dollar customers and the chain’s profits, exacerbating its battle with discount competitors such as Dollar General, Walmart and others.
While the closures will improve the company’s profitability, they are likely to leave a void for Americans with limited shopping choices.
Family Dollar stores are often in areas with few supermarkets, big box stores and other retail options.
Despite renovations, stores have remained in poor conditions along with longstanding theft issues, violent robberies and other crimes.
As Family Dollar struggled, rival Dollar General boomed.
Family Dollar has lost ground to Dollar General, in particular due to prices: Family Dollar’s prices can be 10% to 15% higher than Dollar General’s and other discount competitors. Dollar General, which is more than double the size of Family Dollar, can offer lower prices because of its scale.
Shoppers have shifted to Dollar General, Walmart, Target and other low-priced chains to stretch their budgets.
