Family Dollar Stores, a discount retailer for budget-conscious customers, said Thursday it'll cut jobs, slash prices on 1,000 basic items and close about 370 underperforming stores in response to falling sales and business disruptions caused by bad winter weather.
"Our second quarter results did not meet our expectations," said CEO Howard R. Levine, in a statement. "The 2013 holiday season was challenged by a more promotional competitive environment and a more financially constrained consumer."
The Matthews, N.C.-based retail chain has about 8,100 stores in 46 states.
The changes, which were revealed following the company management's strategic review, could generate about $40 million to $45 million in annual operating profit benefit.
Shares of Family Dollar fell 0.19% Thursday morning to $58.96.
Seeking to save expenses, Family Dollar also intends to slow new store openings beginning in fiscal 2015. About 350 to 400 new stores are planned for fiscal 2015 vs. 525 for fiscal 2014.
The company also reported Thursday that net income for the 2014 fiscal second quarter, which ended on March 1, fell 35% to $90.9 million from a year ago.
Sales were down 6% year-over-year to $2.7 billion. Its stores' performance was affected by one fewer week of business during the quarter and disrupted merchandise deliveries caused by harsh winter weather, the company said.