//Family Dollar Closing 390 Stores

Family Dollar Closing 390 Stores

Share with friends

This week, Dollar Tree, Inc., the parent company of the budget stores Dollar Tree and Family Dollar, said it will close 390 Family Dollar stores in 2019. The news comes on the heels of the company trying to revamp these stores last year. Make them more exciting.

These stores were once considered “Amazon-proof.”

But sprucing them up hasn’t stopped what is becoming evidently inevitable. The closures are a sign of the times.

Online versus retail?

Is it even a competition any longer, some might argue?

Dollar Tree and Family Dollar cater to the serious bargain shopper. They have based their biz model on selling what you can get at Walmart for even cheaper – at prices starting at a buck and typically not going over $10.

Both stores used to be rivals but in 2015 Dollar Tree bought Family Dollar for $8.5 billion, giving Dollar Tree a total of 13,000 stores in the US and Canada – with about $19 billion in annual revenue.

Vox reported on Wednesday, Folding these two companies together has been tough. Analysts have said that Family Dollar has become more of a problem for Dollar Tree than a portfolio boost. With the announcement that it was closing almost 400 stores, the company reported a $2.3 billion loss.

This round of closures is another of scores of other stores shuttering, filing for bankruptcy and going out of business. Brick and mortar stores are becoming a dinosaur in the rear view mirror of 21st century business.