Family Dollar Will Shutter 370 Stores

MATTHEWS, NC—Among the most bullish classes of retailer at the moment and a favorite of net lease investors, dollar stores evidently aren’t insulated from the same headwinds that buffet the sector as a whole. Family Dollar Stores Inc. said Thursday it plans to close 370 underperforming locations, about 4% of its total store count, and is also easing up on new store openings.

“Our second quarter results did not meet our expectations,” says chairman and CEO Howard R. Levine. “The 2013 holiday season was challenged by a more promotional competitive environment and a more financially constrained consumer. In addition, like many retailers, our second-quarter results were significantly impacted by severe winter weather, which resulted in numerous store closings, disrupted merchandise deliveries and higher than expected utility and store maintenance expenses.”