Family Dollar to close about 370 stores

| Friday, April 11, 2014, 12:01 a.m.

Family Dollar plans to cut some jobs and close about 370 underperforming stores as it tries to reverse sagging sales and earnings. The discount store operator will lower prices on about 1,000 items.

The retailer did not provide details on how many jobs are expected to be eliminated.

The chain said the store closings and job cuts should reduce annual operating expenses by $40 million to $45 million, starting in the fiscal third quarter. Family Dollar Stores Inc. has more than 8,100 stores in 46 states.

The job cuts and store closings are estimated to result in an $85 million to $95 million restructuring charge during fiscal 2014's second half.

The Matthews, N.C., company said it will slow new store openings beginning in fiscal 2015 to bolster its return on investment. It anticipates opening 350 to 400 new stores. In fiscal 2014, it opened about 525 stores.

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