Family Dollar store closings to cause job, price cuts

Family Dollar store at Hickory Grove Market in Charlotte, N.C., on Nov. 29, 2005. FILE (AP Photo/Ross Taylor)

April 10, 2014 1:30:41 PM PDT
Family Dollar said it will be cutting jobs and closing about 370 underperforming stores as it looks for ways to improve its financial performance. It said it will also cut prices on about 1,000 basic items.

The announcement came as Family Dollar reported its profit and revenue declined in the second quarter as it dealt with bad winter weather.

The discounter said the store closings and job cuts should lower annual operating expenses by $40 million to $45 million, starting with the fiscal third quarter. Family Dollar Stores Inc. currently has more than 8,100 stores in 46 states.

The Matthews, N.C., company said it will also slow new store openings beginning in fiscal 2015 to bolster its return on investment.