The new stores come as Family Dollar posted modestfourth-quarter and fiscal-year sales gains in what managementdeemed a "challenging economic environment." Same-store sales rose1% year over year in the fourth quarter and 0.9% over the fullyear.

As it opens new units, the company will also add food-carryingcoolers to 575 stores on top of the 5,100 units that now have theappliances. Enhanced food-selling space, which is now in 2,700Family Dollars, will be added to an additional 2,800 locations.

For the store openings and renovations, management plans tospend between $180 million and $190 million, and it hopes that theimprovements will attract customers during a time when consumerconfidence is uncertain, says Howard Levine, Family Dollar'schairman and CEO. "In this environment, consumers need the valueand convenience that we offer even more," he said during afourth-quarter conference call.