Family Dollar Closing 1,000 Stores Nationwide, Maine to Be Affected

As some discount retailers are expanding, others are struggling. Recently, discount grocery chain Aldi announced they were embarking on a massive expansion that would include more than 100 new stores in the northeast. Perhaps they were privy to some information.

That's because Family Dollar and Dollar Tree have announced a plan to close more than 1,000 stores nationwide. According to CNN, about 600 of those closures will happen this year, with the remaining closures happening as leases run out across the country.

The reasoning behind the startling number of closures is likely something customers have experienced first-hand in a Family Dollar store. Mismanagement, store cleanliness, and a decline in affordable items to stock have all crushed Family Dollar's business model, leading to the decision to close stores.

Another key reason is competition. Dollar General has expanded rapidly throughout the country, including here in Maine. Those stores have been better-run and have had far fewer supply chain issues than Family Dollar.

On a national level, the Family Dollar brand has been dragged through the mud recently. The company was forced to pay nearly $42 million in fines for operating a warehouse that was infested with rats and bacteria.

Locally, there have been some serious questions about Family Dollar as well. The Westbrook location closed for a substantial amount of time due to rodent problems and other safety concerns before reopening recently.

Family Dollar currently operates 55 locations in Maine. Some of those locations are likely to close as part of the company's restructuring plan. Stores that are consistently understaffed or have been plagued by health and safety concerns will be the first to close nationwide.

READ MORE: Maine Likely to See Its First Aldi Grocery Stores Soon

The company plans to announce its first round of closures in the coming weeks.