Family Dollar's parent company said Thursday it plans to cut prices at the discount chain and spruce up its stores in order to boost sales.

“Competitive pricing at Family Dollar will over the long term enhance our sales productivity and profitability, and ultimately our opportunity to accelerate store growth," said Mike Witynski, president and CEO of Dollar Tree, which completed its purchase of Family Dollar in 2015.

At a time when customers are coming to its stores "to navigate difficult times," the company said, it also planned to improve merchandising and store standards at Family Dollar. In the most recent quarter, the company said it had opened 95 new Family Dollar stores, renovated 257 existing locations and relocated 24 of them.

"We believe we are putting our best foot forward," the company said.

Meanwhile, rival Dollar General announced Thursday it had opened 436 new stores in the most recent quarter to help meet ongoing demand.

“We expect the business to improve as the year progresses, as consumers continue to increase reliance on Dollar General in this more challenging economic environment,” the company said.

The announcements come as lower-income shoppers are getting crushed by inflation. Neil Saunders, managing director for retail of GlobalData consulting and research group, said in an email that, despite its name, Family Dollar isn’t always the cheapest retailer.

"It is often beaten on price by rivals like Dollar General, Aldi and Walmart," Saunders said, adding that Dollar Tree wants to bring down prices at its Family Dollar stores, "especially on everyday items, so it’s a bit cheaper to shop at Family Dollar," he said.

For consumers who frequent these stores, he said, every few cents of savings adds up. Dollar Tree executives said they are also seeing customers shift away from cash in favor of credit while shopping at its stores.

"For hard pressed families that makes a difference and Dollar Tree hopes its moves will improve shopper numbers and loyalty," Saunders said.

Burlington Stores, which also reported earnings Thursday, said lower-income customers continue to represent "a large and growing demographic."