Family Dollar to Pilot Smaller Store Format

The initiative will support efforts to serve customers in dense urban markets.

CHESAPEAKE, Va. — Family Dollar will pilot an extra small box (XSB) store format in 2026, expanding the discount retailer’s presence in dense urban markets with the goal of supporting unit growth in 2027 and beyond.

According to the company’s earnings report for fiscal year 2025, Family Dollar delivered results ahead of internal expectations across every major financial line, reported Convenience Store News sister publication Progressive Grocer.

Following its $1 billion sale from Dollar Tree to Brigade Capital Management LP and Macellum Capital Management LLC in July 2025, Family Dollar has launched a number of transformational initiatives and operational improvements across pricing, inventory management and supply chain execution. These efforts are supported by its Value Creation program, which encompasses approximately 70 initiatives across merchandising, store operations, supply chain, and technology…

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