Family Dollar Plans to Slash Prices Nationwide

Family Dollar is undergoing a few changes to meet the demands of its customers. The company has announced plans to cut prices in order to boost sales, NBC News reports. "Competitive pricing at Family Dollar will over the long term enhance our sales productivity and profitability, and ultimately our opportunity to accelerate store growth," said Mike Witynski. He is the president of Dollar Tree, which purchased Family Dollar in 2015.

Like other stores fighting against online shoppers and the decline of in-store shopping experiences since the COVID-19 pandemic began, Family Dollar has been impacted. Witynski notes that the store is trying "to navigate difficult times." But they are pressing on. In the last quarter, there have been an addition of 95 Family Dollar stores, renovated 257 existing locations, and relocated 24 of them.

"We believe we are putting our best foot forward," the company said in the statement. Its rival and parent company Dollar General opened 436 new stores in the most recent quarter. "We expect the business to improve as the year progresses, as consumers continue to increase reliance on Dollar General in this more challenging economic environment," an analyst reported.

One of the challenges is that lower-income shoppers are getting halted by record-breaking inflation. Neil Saunders, the managing director for retail at consulting and research group GlobalData said in an email that Family Dollar could be pricey to some shoppers.

"It is often beaten on price by rivals like Dollar General, Aldi, and Walmart," Saunders said. He notes that Family Dollar wants to lower its prices to meet Dollar Tree at some point, adding: "Especially on everyday items, so it's a bit cheaper to shop at Family Dollar."