Family Dollar has closed hundreds of stores in recent months as inflation continues to squeeze customers’ budgets – UK Times

Even Family Dollar is feeling the pressure of inflation on shoppers’ budgets, with about 350 stores closing nationwide over the past 10 months.

The iconic retailer has shuttered around one store per day since July 2025, according to retail tracking firm Local Falcon, as part of a downsizing effort that could see up to 1,000 locations close.

Texas has seen the most closures with 35 stores, followed by Ohio with 28 and Georgia with 26. California recently lost three locations.

Just six states, including Idaho, Massachusetts, Montana, South Dakota, Utah and Wyoming, were unaffected in the latest wave of closures, according to Local Falcon’s analysis.

Despite its name, Family Dollar no longer operates as a true dollar store. Most household essentials, food and basic goods have not been priced at $1 for years, with the majority of items now typically costing under $10 and many everyday staples ranging from $1 to $5.

In 2024, Dollar Tree first announced plans to shutters around 1,000 underperforming Family Dollar sores. The company cites inflation and reduced government assistance programs, which continued to squeeze lower-income shoppers, Dollar Tree CEO Rick Dreiling said in an earnings report cited by TheStreet.

In July 2025, Dollar Tree sold Family Dollar to investment firms Brigade Capital Management and Macellum Capital Management in a deal worth about $1 billion.

Even as closures continue, Family Dollar announced in March 2026 that it is trying to turn the business around by opening smaller stores that cost less to run and are focused on busier, more densely populated urban areas.

“Over the past year, we’ve taken disciplined actions to strengthen the foundation of Family Dollar, and the progress we’re seeing reflects the focus and commitment of our teams across the organization,” Duncan MacNaughton, Chairman and Chief Executive Officer, said in a statement. “We are focused on simplifying the business, improving execution in our stores, and ensuring we are positioned to serve our customers and communities for the long term.”

Despite downsizing, Family Dollar still operates more than 7,000 stores nationwide.