Since its inception in the 1960s, Family Dollar has been a ubiquitous presence in small towns and cities across the United States. However, since its merger with Dollar Tree in 2015, the retail chain has faced significant challenges, leading to widespread disarray and deterioration in many of its locations.
For customers who have ventured into Family Dollar stores over the past five years, the scene is often one of chaos and neglect. Stores are frequently understaffed, leaving aisles cluttered with merchandise, and customers sometimes find themselves assisting employees in stocking shelves. Moreover, the company incurred a staggering $40 million fine for a severe rat infestation, further tarnishing its reputation.
Despite these issues, the parent company, Dollar Tree Inc., is only closing a fraction of its stores nationwide. However, the number is still substantial, with 600 Dollar Tree stores set to close in 2024, and an additional 300 closures planned over the next few years. Additionally, the company will not renew leases for up to 30 stores.
The acquisition of Family Dollar by Dollar Tree was intended to reduce costs and leverage the combined consumer bases to compete more effectively with larger retailers like Dollar General and Walmart. However, the integration of the two companies has faced challenges, resulting in the closure of hundreds of stores in recent years.
One major issue has been poor maintenance in many Family Dollar locations, which has proven to be far worse than anticipated. Despite efforts to renovate hundreds of stores post-merger, many still suffer from neglect, with minimal staffing leading to unclean and poorly stocked stores. To address concerns about theft, the company has had to implement stricter anti-theft measures.
Employees and customers have taken to social media to highlight the dismal working conditions and subpar maintenance in Family Dollar stores. In addition to internal challenges, external factors like the rollback of SNAP benefits have also impacted the company’s decision-making. CEO Rick Dreiling has cited “persistent inflation and reduced government benefits” as significant factors affecting lower-income Americans, who form a substantial portion of Family Dollar’s customer base.
With the recent cessation of additional SNAP benefits, the financial strain on lower-income individuals has intensified, posing a significant challenge for Family Dollar and its parent company moving forward.
