Family Dollar operates a chain of no-frills discount stores. The stores sell household goods, supplies, food and clothing at low prices. The stores accept payment via cash, checks and debit or credit cards.
Dollar Tree announced in July 2014 that it plans to acquire Family Dollar Stores for $74.50 per share or $8.5 billion. Combined, the two companies will operate 13,000 stores across 48 states and five Canadian provinces with annual sales exceeding $18 billion. Dollar Tree says it plans to keep and the Family Dollar brand because it sells items at more than one dollar.
Family Dollar has over 8,100 stores in rural and urban settings in 46 states. It has opened more than 4,000 stores in the past 10 years.
The company announced in April a review of its business and will close approximately 370 underperforming stores in the second half of fiscal 2014 and a total of 400 stores will close for the entire year. It also plans to reduce prices on 1,000 basic items.
Total sales for fiscal 2013 were a record $10.4 billion, an 11.4% increase, and net income was $443.6 million. ales were strongest in the Consumables category, which increased 16.9% during the year, driven primarily by strong growth in food, health and beauty aids, and tobacco.
The company operates 8 distribution centers to supply its stores.
In 1958, Leon Levine was a 21-year-old entrepreneur with an interest in merchandising. He became intrigued with the idea of operating a low-overhead, self-service retail store. Levine believed he could offer his customers a variety of high-quality, good-value merchandise for under $2. Because he had grown up in his family's retail store, he understood value, quality and customer satisfaction.
In November 1959, Levine opened the first Family Dollar store in Charlotte, NC. Right from the start, he had a well-developed philosophy of what Family Dollar would be and how it would operate, a philosophy from which he and his management team have never strayed. The concept is a simple one, "The customers are the boss, and you need to keep them happy."
He created a general floorplan that he used in each of his stores that allowed customers to easily shop for their favorite products in any Family Dollar store. With the stores uniformly laid out and stocked, store managers were able to focus on providing good customer service.
Family Dollar opened its 7,000th store in Memphis in August 2011.
Family Dollar offers benefits to full- and part-time employees. Benefits include medical and dental insurance, life insurance, 401(k) and employee stock purchase plan. Service awards also given to top employees. Paid holiday, sick and vacation days also provided.
Updated July 29, 2014