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Exhibit 10 (ii)

STATE OF NORTH CAROLINA   AMENDMENT TO COUNTY OF MECKLENBURG   EMPLOYMENT
AGREEMENT

        THIS AMENDMENT, made and entered into effective the 16th day of
January 2003, by and between FAMILY DOLLAR STORES, INC., a Delaware corporation
(hereinafter referred to as the "Company"); and R. David Alexander, Jr.
(hereinafter referred to as the "Employee");

W I T N E S S E T H:

        WHEREAS, the Company and the Employee entered into an Employment
Agreement dated August 25, 2000, as amended by Amendments to Employment
Agreement dated September 2, 2001, and September 1, 2002, (hereinafter referred
to as the "Agreement"); and

        WHEREAS, the Company and the Employee desire to amend the Agreement;

        NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the Company and the Employee agree as follows:

        1.    Section 1.04 of the Agreement is amended by adding "Nevada" to the
list of states constituting the "Present Territory."

        2.    The first sentence of Section 3 of the Agreement is deleted and
the following sentence is substituted in lieu thereof:

        "3. Duties and Responsibilities. The Employee shall be employed as
President and Chief Operating Officer of the Company and shall perform such
reasonable duties and responsibilities as the Chairman of the Board of the
Company or Board of Directors of the Company or the Executive Committee of the
Board of Directors of the Company may, from time to time, assign to the
Employee"

        3.    The first paragraph of Section 5.01 of the Agreement is deleted
and the following paragraph is substituted in lieu thereof:

        "5.01 In consideration of the services to be rendered by the Employee
pursuant to this Agreement, the Company shall pay, or cause to be paid, to the
Employee a weekly base salary from January 16, 2003, to August 30, 2003, of
$7,403.85 ($385,000.00 per annum)."

        4.    The following paragraph is added as Section 6A. of the Agreement:

        "6A. Target Bonus Plan. Notwithstanding any other provision of this
Agreement, if the Company terminates this Agreement prior to the end of the term
of this Agreement on August 30, 2003, for reasons other than for Cause, or if
the Company and the Employee do not agree in writing before August 30, 2003, to
extend the term of the Employee's employment by the Company beyond August 30,
2003, the Employee shall be entitled to receive as a severance payment an amount
equal to the pro rata share of the bonus, or the full bonus,as the case may be,
if any, under and subject to the terms and conditions of the Target Bonus Plan
referred to in Section 5.02(a) based on fifty (50%) percent of the Employee's
base salary actually received for the period from September 1, 2002, through the
Termination Date, or through August 30, 2003, if the Employee's employment
continues through that date. This payment is equal to the amount, if any, the
Employee would have received following the end of the fiscal year ended
August 30, 2003, if the Target Bonus Plan did not have a requirement that the
Employee be employed by the Company at the time the bonus is customarily paid.
Such payment shall be made to the Employee on or about November 15 following the
end of said fiscal year."

        5.    All other terms and provisions of the Agreement shall remain in
full force and effect.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
triplicate, all as of the day and year first above written.

    FAMILY DOLLAR STORES, INC.    
Attest:
 
By
 
/s/  HOWARD R. LEVINE      

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Chairman of the Board
 
  /s/  GEORGE R. MAHONEY, JR.      

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Secretary            
(Corporate Seal)
 
 
 
 
 
          /s/  R. DAVID ALEXANDER, JR.      

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R. David Alexander, Jr.   (SEAL) Witness:            
/s/  ALICE R. BARRIER      

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Exhibit 10 (ii)