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New Strategic at Family Dollar

 (Image source: louisianarecord.com)

The discount retailer Family Dollar Stores, Inc. (NYSE:FDO) is planning on closing 370 stores and reducing its employee headcount as result of declining profits. In addition, the retailer will slash prices on a 1,000 basic items. Family Dollar’s earlier strategic to increase consumer prices didn’t go well with their low income customers. While Family Dollar was raising prices, their competition Dollar Tree, Inc. (NASDAQ:DLTR) and Dollar General Corp. (NYSE:DG) were lowering prices and consumers migrated to the competition. The reorganization will reduce annual operating costs in the third quarter of fiscal year 2014 by $40-$45 million.