Family Dollar to remodel stores, target new customers

New York City Family Dollar Stores plans to open new stores, revamp older locations and target a new higher-income demographic, according to a Reuters report.

Family Dollar's core lower-income shoppers have household incomes below $40,000, but the company has said it is attracting more shoppers with household incomes of up to $70,000 as unemployment rises and credit remains tight.

However, president and COO James Kelly said higher-income shoppers are not shopping the entire store, according to the report.

To gain customers' trust of its name-brand food selection, it is introducing a new advertising campaign. Ads will show products such as Kraft Macaroni & Cheese with the slogan: "Exactly the same as the grocery store. We just price them lower."

To sell more to shoppers during each visit, Family Dollar plans to group similar products in one location. It is also trying to make its stores easier to navigate by improving signs and removing clutter.

It will also renovate older stores to make them as productive and easy to shop as the newer locations.