Dive Brief:
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Family Dollar Stores Inc. Thursday reported that its Q1 sales and profits missed expectations.
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Q1 same-store sales dropped .4%, compared to analyst expectations of an increase of 1.4%.
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CEO Howard Levine called the holiday shopping season “rough” for the chain and said the retailer hadn’t seen any bounce in sales from lower gas prices. “I think it’s coming,” Levine said.
Dive Insight:
Family Dollar is switching up its approach, from offering discounts to slashing its everyday prices and selling more low-priced and low-margin items like cigarettes. Shareholders are set to vote on the takeover offer from rival Dollar General Jan. 22. Competing offers from Dollar General and Dollar Tree are still on the table.