1,000 Family Dollar locations to sell alcohol to boost sagging sales
Some Family Dollar stores will begin selling alcohol in hopes of boosting sagging sales.
The move affects about 1,000 stores, according to USA Today. Dollar Tree, the Virginia-based company that acquired Family Dollar in 2015, also plans to expand freezers and coolers at about 400 locations.
The discount retailer plans to close nearly 400 stores this year, with most of the closures planned for the second quarter. In a normal year, USA Today reported, the chain would close about 75 stores.
Dollar Tree’s acquisition of Family Dollar locations hasn’t had the desired impact, resulting in disappointing sales.
The chain plans to re-brand about 200 Family Dollar stores as “Dollar Tree” locations. It will also renovate 1,000 stores to include expanded party goods sections and Dollar Tree-branded merchandise.
Another strategy is the expansion of its test of Dollar Tree Plus merchandise, which the chain offers at “multi-price points.” It essentially means that some locations will sell items for more than the usual price of $1. More than 100 urban, suburban and rural stores will take part in the trial run.
“During this test, we look forward to measuring and assessing the initial results and understanding if the introduction of multiple price points across a broader set of stores is in the best interests of our customers, company and shareholders,” said Gary Philbin, Dollar tree’s president and CEO.