Family Dollar will close nearly 400 stores

NEW YORK, NEW YORK - DECEMBER 11: A woman walks by a Family Dollar store on December 11, 2018 in the Brooklyn borough of New York City. As the income gap between rich and poor continues to grow, dollar and 99 cent stores have become increasingly popular in both urban and rural America. Dollar General, one of several discount retail chains, has become one of the fastest growing retailers in the U.S. According to the Institute for Local Self Reliance, there are now over 30,000 dollar stores in the U.S., up from around 18,000 a decade ago. Dollar General and Dollar Tree alone are expected to have 50k stores in the next few years. (Photo by Spencer Platt/Getty Images)

CHARLOTTE, N.C. — Family Dollar will close 390 stores this year and make big changes to the stores it is keeping open as the discount chain seeks a turnaround.

Family Dollar sells a variety of items for under $10 at rural and urban locations. Dollar Tree bought the company in 2015. But Family Dollar has struggled, and Dollar Tree is under heavy pressure from an activist investor to sell or revitalize the ailing line.

Dollar Tree, which sells everything for $1 and caters more to mid-income customers with suburban stores, has a plan for Family Dollar: Close stores, re-brand some locations as Dollar Tree, and renovate others with $1 Dollar Tree merchandise sections.

“We are confident we are taking the appropriate steps to reposition our Family Dollar brand,” Dollar Tree CEO Gary Philbin said in a news release Wednesday.

The company has not yet released a list of which stores will close.

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