The complicated economic context, coupled with the constant transformations within the retail sector, led Family Dollar to close many of its stores. By 2025, the company plans to continue with this decrease of stores, which is part of a restructuring driven by years of mismanagement and a significant drop in sales.
The move, which began in 2024, will continue with an expected closure of approximately 370 additional stores during 2025. This reduction in the supermarket chain’s physical presence is due to a number of internal factors. These include fierce competition from online retailing and the company’s own operational difficulties. Added to this are external factors, such as the complicated economic scenario currently facing the United States. This is something that can be seen in the report published by the specialized website, AmericaMalls & Retail.
Let us recall that in March 2024, “Family Dollar” had already announced the need to close a large number of physical stores. At that time, it argued that the decision was made due to financial pressure, which was then aggravated by the decrease in SNAP (Supplemental Nutrition Assistance Program ) benefits and a challenging economic environment.
Impacts still being felt
Restrictions in consumer purchasing power functioned as a key factor in accelerating store closings. This resulted in more than 600 stores going out of business over the course of 2024, with another large number to be added this year.
It is worth remembering that “Family Dollar” came to be considered a benchmark in discount retailing and its stores used to fill up. And while its popularity is still alive and well in some areas of the country, there are other factors that led the company to make this drastic decision. According to analysts, changes in consumer habits, with a greater preference for online commerce, directly affected the influx of customers in its branches.
This transition was critical for the well-known supermarket chain, which faces both small stores that were able to better adapt to the digital era and well-known brands that still maintain open branches in the areas where they also have a presence.
Which Family Dollar stores will close their doors by 2025
Family Dollar has announced that closures during 2025 will take place in those stores that fail to meet established financial targets. The company is currently in the midst of a restructuring effort. With this they intend to improve their profitability through a more efficient physical presence.
Another point worth noting is that Family Dollar’s situation is not an isolated case, as many companies are facing the same difficulties and have had to close their stores. These chains are struggling to better adapt to the rapid changes in the market and new forms of consumption, including the growth of e-Commerce.
In addition, there are external factors related to the economy, such as the lack of government aid and high inflation. Let’s remember that the latter factor produces a loss of purchasing power for consumers and also causes prices in supermarkets to skyrocket.
A clear example of this is what happened with Walmart, which received hundreds of criticisms for increasing the price of its eggs. At the end of 2024, factors such as the avian flu, added to the shortage and the increase in the Price Index, caused a tray of 18 eggs to go from costing $7 to $9.52. This is a significant increase in an everyday food.
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