Rumors as to Family Dollar leaving the state of Texas are more complex than they appear.
This article is based on corporate postings and accredited media reports. All linked information within this article is fully-attributed to the following outlets: ScrapeHero.com, Wikipedia.org, BusinessInsider.com, Patch.com, and ExchangeRight.com.
According to ScrapeHero.com: There are 8,073 Family Dollar locations in the United States as of March 07, 2022. The state with the most number of Family Dollar locations in the US is Texas, with 1,105 locations, which is 13% of all Family Dollar locations in America.
Indeed, Family Dollar has became a Texas stalwart.
From the company‘s Wikipedia page: In June 2014, activist investor and major shareholder Carl Icahn demanded that Family Dollar be immediately put up for sale. On July 28, 2014, Dollar Tree announced that it would buy Family Dollar for $8.5 billion. The sale delivered a windfall to the company's biggest shareholder Carl Icahn, who acquired his 9.4 percent stake in June 2014. On January 22, 2015, Family Dollar shareholders approved the Dollar Tree bid.
Though both Family Dollar and Dollar Tree nationally largely remain thriving in 2022, targeted online searches reveal either ongoing issues or rumors as to the companies’ health in the state of Texas.
Let us review further.
Family Dollar Status, 2022
In February, 2022, Business Insider was among many media outlets that reported the temporary closing of hundreds of Family Dollar Stores. See here for “Family Dollar is Temporarily Closing 404 Stores After More Than 1,000 Dead Rats Were Found in a Distribution Center,” which states: On February 18, the company issued a news release that listed the affected stores that may have sold products from the contaminated facility. The company said they were working with the US Food and Drug Administration (FDA) to begin a voluntary recall, as Insider previously reported. A company spokesperson told Insider: "We temporarily closed the affected stores in order to proficiently conduct the voluntary recall of certain FDA-regulated products. Our teams are working hard to reopen these stores as soon as possible."
Though the contaminated distribution center was in Arkansas, the issue became confused in the public eye when resurfaced stories from websites such as Patch.com showed similar headlines focused on the Texas area. In their piece entitled “Family Dollar, With 50 Dallas Stores, Closing Hundreds Of Stores,” the site reported a story from three years earlier: The news comes as Gary Philbin, Dollar Tree's CEO and president, said Wednesday that Family Dollar had delivered its "strongest quarterly same-store sales growth of the year," in the fourth quarter of fiscal year 2018. Dollar Tree moved "aggressively" to "optimize" Family Dollar's performance," Philbin said. That included closing 84 stores and announcing plans to renovate at least 1,000 others in 2019.
Once again, targeted internet searches bore out — and continue to do so — rumors that Family Dollar was in danger of going out of business in the state with the most locations. This, however, is patently false, as both Family Dollar and Dollar Tree are doing strong business. See ExchangeRight.com for the following financial profile on Family Dollar:
- 2021 Annual Revenue
- 2021 Gross Profit
- 2021 Annual Net Income
- 2021 Fiscal Year Revenue Growth
- 2021 Number of Stores
Again, these numbers are strong, and reflect healthy business.
When online stories mention a specific area in its headline, perhaps most frequently when it comes to negative news, social media tends to embellish the truth and soon rumor prevails.
Neither Texas, nor any other state, is in imminent danger of losing Family Dollar.
Thank you for reading.