1 in 4 Businesses Will File Bankrupcty In 2019

Family Dollar was once considered “Amazon-proof.” Now it’s closing hundreds of stores.

Vox.com  Mar 7, 2019, 1:30pm EST

This week, Dollar Tree Inc., the parent company of the budget stores Dollar Tree and Family Dollar, said it will close 390 Family Dollar stores in 2019. The news comes on the heels of the company trying to revamp these stores last year to make them more exciting for shoppers, but the closures signal how hard it is to turn around a struggling brand in today’s retail landscape.
Dollar Tree and Family Dollar are budget-friendly stores, known for selling groceries, accessories, and home goods at prices that start at $1 and don’t typically go past $10. The two stores used to be rival discount chains, but in 2015, Dollar Tree bought Family Dollar for $8.5 billion. The acquisition gave Dollar Tree a total of 13,000 stores total, in the US and Canada, with about $19 billion in yearly revenue.
Folding these two companies together has not been easy, though, and analysts have said that Family Dollar has become more of a problem for Dollar Tree than a winning addition to its portfolio. With the announcement that it was closing almost 400 stores, the company reported a $2.3 billion loss.
This most recent round of closures is just another addition to the pileup of brands shuttering stores, filing for bankruptcy, and going out of business. Brick-and-mortar stores are struggling, as they fail to face off with online competitors, and are stuck with tons of stores that have high rent prices.