Dollar stores have popped up almost everywhere in the US over the last decade or so. But Family Dollar is about to shrink.
The chain will close about 1,000 stores in the coming years, parent company Dollar Tree said last week. That's about 13% of all Family Dollar stores in the US.
Dollar Tree executives pointed to several reasons for closing the stores on last week's earnings call. Some are facing stiff competition from rivals. Some are coping with high rates of retail theft, even though Dollar Tree stores seem to have a better handle on the issue. And many are just less profitable for the company than Dollar Tree stores, the executives said.
It's been a rocky decade for Family Dollar. Rival Dollar Tree acquired the company in 2015, but it has struggled to run the retailer.
Family Dollar shoppers' budgets have also been hit hard by rising prices and cuts to food assistance benefits like SNAP. "Persistent inflation and reduced government benefits continue to pressure the lower income consumers that comprise a sizable portion of Family Dollar's customer base," Dollar Tree CEO Richard Dreiling said on the company's recent earnings call.
To find out what Family Dollar is like for shoppers, I headed to a store in Maryland, just outside of Washington, DC, a few days after Dollar Tree made the store closing announcement. A spokesperson for Dollar Tree and Family Dollar did not respond to a request for comment on my findings.
Here's what I found:
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