Discount Store Chain to Close Hundreds of Outlets
Family Dollar stores, known for their cut-rate pricing, will be facing some cuts themselves. The Detroit Newsis reporting today that the chain will close nearly 400 underperforming stores and likely leave an equal number of workers without jobs.
Company officials are confirming about 370 stores could be shuttered in an attent to trim up to $45 million from the budget. Other stores,though, will open next year.
The announcement comes as Family Dollar reported declines in profits and revenue for the second quarter of the year.
The report indicates company officials admit the harsh winter weather may have contributed to the decline with delayed shipments along with higher-than-expected utility and maintenance costs.
The numbers, though, were very critical to success of the discount chain. The first quarter figures included the critical holiday shopping period. Company officials say they were outpaced by larger stores that had bigger promotional budgets.
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