Family Dollar mum on fate of stores, including about 20 in midstate
Family Dollar, with about 20 locations in the midstate, announced it plans to close 370 stores nationwide after a disappointing earnings report Thursday.
The retail-chain did not specify which stores will be closed, and a Family Dollar spokeswoman did not return a message Thursday. In its second-quarter earnings report released Thursday, the company said its net sales dropped from $2.9 billion in 2013’s second quarter to $2.7 billion for the second quarter.
Earnings per diluted share dropped to 80 cents compared with $1.21 in the second quarter of 2013.
The loss — partly to be blamed on the harsh winter, according to Howard R. Levine, company chairman and CEO — required a number of corrective actions, including closing the 370 unnamed stores.
Other actions include lowering prices on almost 1,000 items and slowing the opening of new stores starting in fiscal year 2015, according to a company news release.
The release noted the company plans to open 525 new stores in 2014, but will cut that to between 350 and 400 in 2015.
The company also said it would reduce “corporate overhead” without specifically mentioning layoffs, but it expects a cost of between $85 million and $95 million for “restructuring,” including the reduction of the workforce and store closures.
Those reductions and closures are expect to save the company about $40 million to $45 million per year, according to the release.