Family Dollar to open smaller-format stores in urban locations

CHESAPEAKE, Va. — Family Dollar said it plans to roll out smaller-format stores aimed at dense urban markets. The discount retailer—now a private, standalone company following its acquisition from Dollar Tree last year by two venture-capital firms—disclosed the initiative in a press release while detailing its fiscal 2025 financial results. During the year, the chain, which operates 7,250-stores, reported $13 billion in revenue and comparable sales growth of 2.5%.

"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," said Duncan MacNaughton, chairman and chief executive officer. "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."

As part of its new-store growth strategy, Family Dollar said it is developing an extra small box (XSB) format designed to expand its urban footprint. The company expects to pilot the format in 2026, with plans to support unit growth beginning in 2027 and beyond. According to the retailer, the XSB stores will complement its existing portfolio while improving its ability to serve customers in high-density neighborhoods.