Listen: Family Dollar, Kimberly Adams And Ted discussed on RadioLab
"Corporate America today comes this item, the deep discount chain dollar tree reported fourth quarter results this morning sales were up Ted, which is good. And all but the big news was that the company is going to close almost four hundred Family Dollar stores dollar tree, but Family Dollar four years ago. And as marketplace's Kimberly Adams reports, the fam- struggled to adapt. Today's announcement has many retail analysts labeling the four year old merger a bad bet performance. Just didn't turn out the way the investment bankers and the senior executives had hoped. It would Mark a Cohen is director of retail studies at Columbia business school. He says this outcome for dollar tree was pretty obvious to those watching closely. And so they're announcement today suggests that they're facing the music we asked dollar tree to comment for this story today, they said no Family Dollar has been having problems for a while despite a rapid expansion in dollar store type retailers across the country. Anthony. Kumba is managing director at loop capital markets for you have a lot of other deep discount retailers. Whether it's a Dollar General, whether it's a five below that are knocking the cover off the ball, not so much with Family Dollar. He blames that on supply chains company culture and food about seventy five percent of Family Dollar sales are consumable items. So they have a lot more food than dollar tree has many of these stores are in low income areas where people may not have easy access to groceries and while stores, like Family Dollar and dollar tree. Face a lot of criticism for food quality. They have been expanding their range analyst Paulo rosenbloom at our s our research says that's another reason the company is struggling everyone says the more food you sell the better. I don't find that to be true because it may be a traffic driver. But it's also got low margins in addition to closing stores dollar tree says it plans to. Remodel a thousand Family Dollar stores and rebrand another two hundred as dollar trees in Washington. I'm Kimberly Adams for marketplace."