Wednesday, May 14, 2014

Idaho Falls not excluded from Family Dollar store closings

We've had a few inquiries about the closing of the Family Dollar store on South Holmes (the one on Woodruff, next to WinCo is still open), so here is what we've found out.

In mid-April, in the wake of a disappointing second-quarter financial performance, the chain announced it was closing nearly 400 stores, reducing the size of its work force and looking for other ways to save.

Family Dollar reported $2.7 billion in second quarter fiscal 2014 revenue, a figure that fell roughly in line with what Wall Street was expecting but a 6 percent decline over the same period the prior year. Same store sales for the quarter fell 3.8 percent, which the company said was the result of customers spending less. Analysts have said some consumers may be feeling more flush and trading up to stores like Wal-Mart and Target, while others are pulling in spending even more.

“The 2013 holiday season was challenged by a more promotional competitive environment and a more financially constrained consumer," said Howard Levine, Family Dollar chairman and CEO. In addition to closing 370 stores and cutting staff, Levine said the company planned to lower prices on 1,000 items.

The company has not released a list of stores it is closing.