Family Dollar to pilot new store format; gives 2026 outlook
Family Dollar is thinking smaller.
The extreme discounter said it is advancing new store growth initiatives, including the development of an extra small box store format designed to expand its presence in dense urban markets. Family Dollar expects to pilot the new format in 2026, with the goal of supporting unit growth beginning in 2027 and beyond.
The new small-sized store is designed to complement the company's existing store base while enhancing its ability to serve customers in high-density neighborhoods, according to the company.
The news about the new format was included in a press release detailing Family Dollar’s 2025 performance and its outlook for 2026, which will be its first full year as a standalone company. (In July 2025, Dollar Tree Inc. completed the sale of Family Dollar to private equity firms Brigade Capital Management and Macellum Capital.)
Family Dollar said its key results for 2025 included approximately $13 billion in revenue in 2025; same-store sales growth of 2.5%; and EBITDA performance of $495 million, exceeding internal budget by 24%
Additionally, the company said it closed underperforming locations as part of its broader transformation strategy which delivered downstream benefits across the entire business. It also improved its balance sheet and liquidity position, with total liquidity of approximately $1 billion at year-end, including cash and availability under its credit facility.
"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. "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."
MacNaughton previously served as president and COO of Family Dollar under Dollar Tree’s ownership.
2026 Outlook
The company's current financial planning reflects approximately 25% EBITDA growth in fiscal 2026 compared to fiscal 2025, driven by positive comparable store sales growth, continued working capital improvements, operational efficiencies, and ongoing execution of its "Value Creation" initiatives. As part of its multi-year plan, the company is targeting EBITDA to exceed $1 billion.
