Family Dollar will begin its first full year as a standalone company with plans to pilot an extra-small box (XSB) store format designed to expand the retailer’s presence in dense urban markets. Family Dollar will introduce the new format in 2026, with the goal of supporting unit growth in 2027. No information was provided on how many stores would be involved in the pilot program or when it will kick off.
The plans were announced as Family Dollar announced its FY 2025 results, which included generating approximately $13 billion in revenue and achieving comparable sales growth of 2.5%. The company also optimized its current store fleet, according to a company statement, including closing underperforming stores.
In July 2025 Family Dollar was officially spun off when former owner Dollar Tree completed the sale to private equity companies Brigade Capital Management, Macellum Capital Management and Arkhouse Management.
“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 CEO in a statement. “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.”
The Family Dollar transformation efforts are supported by a Value Creation program encompassing approximately 70 initiatives across merchandising, store operations, supply chain and technology. “Initiatives that began with the company’s separation delivered meaningful results in the back half of 2025 and are expected to continue driving progress in 2026, alongside an accelerating pipeline of new initiatives launching this year,” according to the company statement.
In November 2025 Family Dollar partnered with DoorDash for on-demand deliveries from its approximately 7,000 stores nationwide.
