Family Dollar failed because it’s not a dollar store. My wife hates it for that reason— goes to Dollar Tree instead. The name is stupid.
Family Dollar also faces competition from Dollar General, which has good value on high quality basics.
We once had 3 different Dollar-type stores within 20 miles. We now have (had) just Family Dollar.
They were all full of 1) low quality house brand merchandise. Watered detergent is not a bargain, for example. 2) Merchandise that was exactly one cent less than the exact same product at Walmart.3) Stuff that no one really needs much of, such as gift wrap/bags, beach toys, candles with odd scents.
At one point, they all carried a decent line of personal hygiene and first aid items. This seemed to shrink down to staples like peroxide, kiddie bandaids which are pricey to begin with because of the illustrations and an entire shelf dedicated to Black hair products in an area that is 99% Caucasian.
Then there were the grocery aisles. Originally, several items I would and did return for. But then, again, national brands at one cent below Walmart or sometimes at the very same price.
That, IMO, is why they are out of business.