Family Dollar is a mess. It hopes lowering prices will help | CNN Business

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Family Dollar has lost ground in the dollar store race for years. Now, the discount chain hopes lowering prices will help win back customers on tight budgets.

Its main competition is the much larger Dollar General\n \n , which has grown rapidly over the past decade. The companies battle for many of the same low-income shoppers in cities and rural areas, and both sell mostly food and everyday items for between $1 and $10. But Family Dollar’s prices can be 10% to 15% higher than Dollar General’s and other discount competitors. Higher prices have contributed to weak performance, so the chain is dropping those prices in an effort to better compete.

” The strategy appears to be working so far: Last quarter, foot traffic to Family Dollar stores increased for the first time in three years. “It’s a logical step,” Michael Montani, a retail analyst at Evercore ISI, said of the price cuts. “Now can they build on that momentum?” Family Dollar, with its 8,000 or so locations, has been plagued by a range of issues including cluttered, understaffed, and, in some cases, hazardous stores.

 

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If you say 1 dollar, mean 1 dollar

Have heard too many horror stories about their warehouses conditions. Stick with DG.

There was a dollar store race? 😨😨

They can start by actually charging 1 dollar

I believe '50 Cents' as a brand name has been taken already.

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