Family Dollar Closing 370 Stores

After announcing plans to expand its national footprint one year ago, Family Dollar Stores Inc. (Charlotte, N.C.) is shuttering 370 stores across the U.S. The decision came in light of disappointing second quarter earnings, which were down six percent from the same period in 2013.

The company also plans to reduce its workforce, lower prices on its staple items and slow down new store growth.

“We are taking immediate, strategic actions to improve our performance,” says Howard R. Levine, chairman and ceo. “First, we have made a significant investment to lower prices on about 1,000 basic items. Second, we are reducing our cost structure through the optimization of our workforce. Third, we will close approximately 370 underperforming stores.“

The changes are expected to result in $40 million to $45 million of annualized operating profit benefit, beginning in the third quarter of fiscal 2014.