Popular discount store Family Dollar is closing 390 stores this year, reported CNN. They are just one of the stores that have already announced major closures this year.
The chain caters to low-income shoppers by offering items sold for less than $10. The chain, which has more than 8,000 stores, is owned by the Dollar Tree.
Dollar Tree stores cater to customers who make more than Family Dollar customers do. However, all of their products sell for only $1.
Dollar Tree bought Family Dollar combined in hopes of keeping customers from their competitors in 2015. They compete with Dollar General and Walmart.
Sadly, Family Dollar has struggled since then. The store has hurt Dollar Tree's stock price as well since the deal went through.
"Dollar Tree significantly overpaid for Family Dollar, and this business is proving to be a meaningful distraction," Jeffrey Smith, CEO of Starboard Value, wrote to the company in January. The firm, which is best known for revitalizing Olive Garden's parent company Darden, owns roughly 1% of Dollar Tree.
"The underperformance at Family Dollar since the acquisition has persisted long enough," Smith said.
Family Dollar will close nearly 400 stores this year on top of the more than 120 it closed in 2018. It will also re-brand around 200 stores as Dollar Tree this year.
Other Family Dollars will keep the name. However, moving forward, they will be stocked with $1 Dollar Tree merchandise and liquor sections.
"We are confident we are taking the appropriate steps to reposition our Family Dollar brand," Dollar Tree CEO Gary Philbin said in a news release Wednesday.
Discount competitor Dollar General has more than 15,000 stores across the country. They also sell groceries at their rural location.
Will you miss Family Dollar? Let us know in the comments.