Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Family Dollar closing 370 stores, dropping prices: sign of the times?

(Business News) After announcing plans to triple their number of stores, Q2 revenue reports have Family Dollar reversing course and shuttering nearly 400 locations.


Family Dollar reversing course

After announcing expansion plans, Family Dollar has reversed course after a disappointing second quarter, with revenues falling 6.0 percent in that period.

During the economic recession, discount stores were expanding their footprint as sales skyrocketed, but Family Dollar has announced they will close 370 stores, representing roughly 5.0 percent of their footprint. The company has not yet announced a list of which locations will be shuttered. Is this a sign of the times as money is slowly trickling back into the economy, and what does this spell for other discount chains?

Family Dollar has also stated that they will be reducing staff and lowering prices on over 1,000 items, according to business writer, Maggie McGrath.

“Clearly, these results did not meet our expectations,” chief executive Howard Levine said during a conference call with analysts. “The last few quarters have been challenging.”

Addressing the discount store bubble

In 2013, the company had unveiled plans to more than triple the number of retail spaces, putting their store total at 23,000 stores, and while a cut of 370 stores leaves thousands of Family Dollar stores with open doors, this move is a serious reaction by the c-suite.

Advertisement. Scroll to continue reading.

Many analysts opined in past years that the dollar store bubble would burst when the economy improved, and here we are as the tea leaves prove to be true. With deeper discounts hitting the shelves of Family Dollar to help them compete against their many competitors, and with a reduction in expansion plans, Family Dollar represents the first domino that will fall.

The writing is on the wall for the sector, and Dollar General could be next to contract. According to a March 19 filing with the U.S. Securities and Exchange Commission, Dollar General CEO Richard Dreiling sold the majority of his shares in the company in the open market for nearly $19 million.

Written By

Marti Trewe reports on business and technology news, chasing his passion for helping entrepreneurs and small businesses to stay well informed in the fast paced 140-character world. Marti rarely sleeps and thrives on reader news tips, especially about startups and big moves in leadership.



  1. Medaton

    May 9, 2014 at 2:13 am

    Hate to see the store in our little town close. The sign was up today… CLOSING…

  2. Pingback: Aldi & Lidl stores coming to America, everyone will freak out with happiness - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business News

Are you asking the wrong questions? A Human Resources expert discusses the best and worst questions asked during candidates interviews.


This week on AG Live we dive into some fascinating changes in the tech and business worlds.

Business News

(BUSINESS) What do you need to think about and explore if you want to apply for a Board of Directors? Here's a quick rundown...

Business News

(BUSINESS NEWS) It's unfortunate that sexual harassment still exists in the modern-day, but we have easier access to resources to curb this behavior.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.