Family Dollar Will Lower Prices to Compete with Other Discount Retailers

Challenging economic times have led consumers to prioritize finding the best deal. This has increased the popularity of dollar stores. Now, Family Dollar will be reducing its discount prices even further. 

According to NPR, “Research suggests 88% of Americans shop at dollar stores at least sometimes.” Additionally, the research stated about 4 in 10 new store openings in the country were for dollar stores in 2021.  

Family Dollar’s reasoning for slashing prices is to keep up with other discount competitors including Dollar General. According to CNN, Family Dollar’s prices can be 10% to 15% higher than its competitors. The higher prices have led to weak performance and executives are hopeful that by lowering them the company can have a “revival.”

Family Dollar has reportedly been plagued with problems for years including “cluttered, understaffed, and, in some cases, hazardous stores,” according to CNN. 

Previously, Family Dollar CEO, Mike Witynski, explained that the store will be undergoing additional changes. These changes include “adding a linear footage, developing seasonal assortments as a focal point, utilizing deeper shelving on key consumable categories to enhance store efficiencies and improve in-stocks, expanding the direct-to-store delivery offering, enhancing space dedicated to snacks and increasing the beverage offering, and optimizing the frozen food assortments,” Witynski said on an earnings call.