Family Dollar is closing 390 stores nationwide as it seeks to better its financial position.
The company announced the changes in a statement to investors Wednesday announcing its fourth-quarter earnings.
The closings are set to take place this year, but at present, there's no list of which stores will be affected. In addition to the closings, another 200 stores will be remodeled into Dollar Tree stores.
Dollar Tree is Family Dollar's parent company. The two previously separate business joined together three years ago.
The company said Wednesday that it's seeking rent concessions from landlords at the 84 stores closed late last year and if it doesn't get them, it'll speed up the pace of store closings to that 390 locations total. Dollar Tree closes about 75 stores annually.
"We are confident we are taking the appropriate steps to reposition our Family Dollar brand," Dollar Tree CEO Gary Philbin said in a statement.
The company had 15,237 stores in 48 states and five Canadian provinces as of Feb. 2.
The company has been putting more $1 products sections in its stores to offer cheaper products to customers.
The changes could have significant impact on some rural areas. Over the last decade, Family Dollar and its chief rival, Dollar General, have become the only food or retail stores in some small towns, as local stores have gone out of business and the bigger retailers have pulled up stakes.
