US: Family Dollar to close 370 stores
Family Dollar "not satisfied" with results
US discounter Family Dollar Stores has announced plans to cut jobs and close around 370 under-performing outlets.
The closures are part of Family Dollar's plans to strengthen its value proposition and improve its financial performance.
The retailer revealed it was executing a series of "immediate" strategic actions as it booked declining second-quarter earnings and sales.
Family Dollar is reducing corporate overheads and re-aligning "key organisational functions". The moves, the company said, will improve execution and reinforce the company's commitment to being "an efficient, low-cost retailer".
The retailer also plans to invest "significantly" to lower prices on nearly 1,000 basic items.
The company estimates the impact from the reductions to the workforce and store closures to deliver a benefit of $40m to $45m to annualised operating profit, beginning in its third quarter.
In its second quarter ended 2 March, Family Dollar revealed profits of US$90.9m, down from $140.1m a year earlier. The retailer said a winter of poor temperatures dragged down earnings by at least five cents per share, and the year-ago period included an extra week.
Net sales were $2.7bn as compared to $2.9bn in the comparable period of last year.
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