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Family Dollar closes nearly 400 stores

The low-income chains with a range of goods sold for under $ 10 at their more than 8,000 stores. It is owned by Dollar Tree, which runs an eponymous chain of 7,000 other stores in suburban areas. Dollar Tree Stores caters to customers who make more than Family Dollar customers, but all their products sell for only $ 1. Dollar Tree bought Family Dollar 2015 for $ 8.5 billion. The merged company hoped that by joining together could increase its customer base, reduce costs and stave off major retailers like Dollar General ( DG ) and 19659003] WMT ) . But Family Dollar has fought and Dollar Tree's ( DLTR ) shop. An activist investor pushed the company sharply earlier this year to dump the sad Family Dollar line and start selling Dollar Tree goods at higher prices. "Dollar Tree is significantly overpaid for Family Dollar, and this business turns out to be a meaningful distraction," wrote Jeffrey Smith, CEO of Starboard Value, to the company in January. The company, which is best known for reviving Olive Gardens parent company Darden ( DRI ) owns about 1 % of Dollar Tree. "The underperformance of Family Dollar since the acquisition has lasted long enough," Smith said. Dollar Tree outlined an aggressive Family Dollar plan on Wednesday after Family Dollar posted a quarterly weak growth during the holidays. Sales in the Family Dollar stores opened at least one year increased 1.4% during the holiday season compared to the previous year, followed by…

The low-income chains with a range of goods sold for under $ 10 at their more than 8,000 stores. It is owned by Dollar Tree, which runs an eponymous chain of 7,000 other stores in suburban areas. Dollar Tree Stores caters to customers who make more than Family Dollar customers, but all their products sell for only $ 1.

Dollar Tree bought Family Dollar 2015 for $ 8.5 billion. The merged company hoped that by joining together could increase its customer base, reduce costs and stave off major retailers like Dollar General ( DG ) and 19659003] WMT ) .

But Family Dollar has fought and Dollar Tree’s ( DLTR ) shop. An activist investor pushed the company sharply earlier this year to dump the sad Family Dollar line and start selling Dollar Tree goods at higher prices.

“Dollar Tree is significantly overpaid for Family Dollar, and this business turns out to be a meaningful distraction,” wrote Jeffrey Smith, CEO of Starboard Value, to the company in January. The company, which is best known for reviving Olive Gardens parent company Darden ( DRI ) owns about 1

% of Dollar Tree.

“The underperformance of Family Dollar since the acquisition has lasted long enough,” Smith said.

Dollar Tree outlined an aggressive Family Dollar plan on Wednesday after Family Dollar posted a quarterly weak growth during the holidays. Sales in the Family Dollar stores opened at least one year increased 1.4% during the holiday season compared to the previous year, followed by Dollar Tree’s growth of 3.2%.

Family Dollar will close nearly 400 stores this year on top of more than 120 it closed in 2018. It will also mark around 200 stores like Dollar Tree this year.

Other Family Dollars will keep the name, but will be stacked with $ 1 Dollar Tree merchandise and booze sections. Family Dollar says the new business model will lift traffic and sales, especially in areas where they have fallen.

“We are confident that we will take appropriate measures to redeploy our Family Dollar brand,” said Dollar Tree CEO Gary Philbin in a press release Wednesday. In the wake of the Board’s criticism, Dollar Tree will also start testing prices with high prices on its stores.

Dollars and discount segments of retail have become hyper competitive in recent years, as more Americans are chasing for bargains on everything from food to electronics. Despite the growing economy, many Americans living paychecks continue to pay paychecks to fight and create more room for dollar trades to expand.

“The dollar store sector will remain one of the bright places in the retail business,” said Mickey Chadha, Moody’s analyst.

 Why a great discount store buys the remains of toys

Discount competitor Dollar General has more than 15,000 stores across the country and the company wants to expand even more in rural areas. Dollar General has also started selling more groceries in rural areas. ] ] ) ) ) ) flourishes. The discounts Aldi and Lidl also plan to open hundreds of stores in the US to reach customers who shop for cheap groceries. Walmart and Target ( TGT ) have lowered the prices of goods in recent years.

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