Family Dollar Announces Plan to Close Nearly 400 Stores [VIDEO]

Dollar Tree Inc., which acquired Family Dollar about four years ago says it plans to close 390 Family Dollar stores in 2019 and will re-brand about 200 stores with the Dollar Tree name.

Items at Dollar Tree are said to be priced at $1 or less while Family Dollar sells items that may be priced as high as $10.

Neil Saunders, managing director for GlobalData Retail, says that Family Dollar's customers typically have a lower income than the average Dollar Tree shopper.

"Dollar Tree has a much broader customer base, which includes more affluent shoppers," Saunders wrote. "There are a lot more discretionary purchases made at Dollar Tree, despite the fact all products are a dollar or under. Visits to a Dollar Tree are not always made out of necessity. A lot of people go there out of curiosity and to see what's on offer."

The list of Family Dollar stores to be shuttered has yet to be released.