Another Dollar Store Chain Is Changing Its Prices
Chain store Family Dollar has been losing business for the last number of years, but now that is going to change. In a bid to turn around its retail future, Family Dollar is lowering its prices to entice loyal customers back to its dollar stores.
Over the last number of years, Family Dollar has been inundated with different problems ranging from cluttered, unstaffed branch locations to actually unsafe, hazardous stores. Due to these problems, shoppers have changed over to low-price mega-stores like Walmart and Target.
Family Dollar has over 8,000 branches nationwide, and in 2014 the company was bought by Dollar Tree. Since then, they have downsized. They have closed hundreds of dollar stores and renovated others in an effort to rekindle consumers’ love of their bargains. In smaller towns, they tried to lure customers into their dollar stores by offering both Dollar Tree and Family Dollar Merchandise.
Now with many families and households on a tight budget, Family Dollar believes that their lowered prices will be enough to turn around their profits.
Its main competition is Dollar General, which sells the same merchandise for around the same price. But while Dollar General has expanded rapidly over the last number of years, Family Dollar has not. Consumers think this is due to Family Dollar’s slightly higher prices and other issues. If this is the case, reducing their costs could help revive their business.
Recently the company has been assigned new management, and they overhauled the business and image in an effort to save it. Reducing prices is something that not many companies are willing to do at the moment, but the new management stated that in the short term, it would squeeze their profits, but it is the right decision in the long term.
While they have not released how much their prices will drop, a spokesperson for the company said it would vary product by product. Reducing costs along with the dollar store renovations and introducing a better layout seems to be working as foot traffic has increased in Family Dollar for the first time in over three years. Let’s hope this momentum continues.
Many consumers and families have to tighten their belts this winter due to the increasing prices of energy, food, and other basic necessities. The economy has turned volatile after the COVID-19 pandemic due to the Ukrainian war, hyperinflation, the cost of living crisis, and the supply chain crisis.
The perfect economic storm has caused damage to many businesses trying to retain some profit, with many household names like Bed, Bath and Beyond on the verge of closing their doors.
Owning and running a business in this market is not a small feat and shouldn’t be taken lightly. It is horrendous to try and turn a profit with economic problem after problem. America needs to keep as many home-grown businesses open as possible; it will give the economy the boost it needs to recover. Hopefully, this New Year will bring a better year for Family Dollar and many other American businesses.
