Struggling Family Dollar Locations to Get Alcohol
Dollar Tree is adding liquor to a thousand locations in an effort to boost sales at Family Dollar.
May 31, 2019
CHESAPEAKE, Va.–Dollar Tree will put alcohol in a 1,000 Family Dollar locations as part of its strategy to increase sales at the chain, USA Today reports. The company also will add more coolers and freezers at 400 Family Dollar units.
Recently, Dollar Tree said it would be shuttering nearly 400 Family Dollars in 2019, more than it usually closes. Family Dollar same-store sales have been dismal since Dollar Tree bought the chain in 2015.
In addition, Dollar Tree will revamp a thousand Family Dollar stores to increase its party goods section and bring in Dollar-Tree branded products. Another 200 units will turn into Dollar Tree stores.
“In our view, Family Dollar remains a drag on performance and its transformation will continue to absorb both management time and company capital for the remainder of this year and beyond,” said Neil Saunders, managing director for GlobalData Retail. “Fortunately, the steps being taken to improve performance at Family Dollar appear to be working.”
Last week, Dollar Tree also expanded a pilot program in which it sells more products at a higher price point than $1. Now, more than 100 Dollar Tree units will have Dollar Tree Plus! items.
“Our Family Dollar turnaround is gaining traction,” said Gary Philbin, CEO of Dollar Tree. “Our efforts to accelerate initiatives to optimize the real estate portfolio are making a difference as demonstrated by our improving same-store sales results.”
Dollar stores continue to prove popular with consumers.
