The retailer has been struggling to compete with rival discounters, drugstores and big-box retailers such as Target Corp. and Wal-Mart Stores Inc. To combat slumping sales, Family Dollar embarked on a review of its business this year. As part of its turnaround plan, the company is closing about 370 underperforming stores and opening fewer new ones. It’s also lowering prices in a bid to entice shoppers.
Family Dollar has “consistently underperformed its peers” in same-store sales, total revenue growth, sales per store, sales per square foot, operating margins and capital-structure efficiency, Icahn wrote in the letter, which opened by remarking on the “cordial nature” of the previous night’s discussion.
→ Providence Business News: Solomon proposes citywide 15-year tax stabilization plan
“I want to send a loud and clear message to the development community that Providence is open for business,” Solomon said in the news release. “If we don’t bring certainty to this process we are losing a once in a lifetime opportunity to grow our tax base, grow our population and create much needed jobs. I plan to reach out to the developers who have expressed frustration with the process to assure them my plan will remove the politics and uncertainty that has plagued this city for far too long.”
The new system would be based on recommendations issued earlier this year by an economic development task force formed by the city council partly in response to the continued vacancy of the Industrial Trust building.