Retailer Profile
Family Dollar Stores in USA
Retailer Profile - Family Dollar Stores in USA
Table of Contents
RETAILER OVERVIEW ...................................................................................................................................................... 3
IN A PAGE ................................................................................................................................................................................... 3
STORE FORMATS ........................................................................................................................................................................ 3
STRUCTURE & KEY CONTACTS .................................................................................................................................................. 4
CONTACT DETAILS...................................................................................................................................................................... 6
STRATEGY .......................................................................................................................................................................... 7
STRATEGIC VIEW ........................................................................................................................................................................ 7
SWOT ........................................................................................................................................................................................ 8
MARKETING ................................................................................................................................................................................. 9
PRIVATE LABEL ........................................................................................................................................................................... 9
BUYING...................................................................................................................................................................................... 10
SUSTAINABILITY ........................................................................................................................................................................ 11
SHOPPER INSIGHTS .................................................................................................................................................................. 11
CATEGORY INSIGHTS ................................................................................................................................................................ 12
FINANCIAL REVIEW ........................................................................................................................................................ 13
FINANCIAL ANALYSIS ................................................................................................................................................................ 13
E-COMMERCE .................................................................................................................................................................. 22
E-COMMERCE STRATEGY ........................................................................................................................................................ 22
IT & SUPPLY CHAIN ........................................................................................................................................................ 23
IT ............................................................................................................................................................................................... 23
SUPPLY CHAIN .......................................................................................................................................................................... 25
NEWS & INSIGHTS .......................................................................................................................................................... 27
DEVELOPMENTS........................................................................................................................................................................ 27
FAMILY DOLLAR (DISCOUNT VARIETY STORES) - RETAILER OVERVIEW ........................................................ 46
STORE CONCEPTS.................................................................................................................................................................... 46
STRUCTURE & KEY CONTACTS ................................................................................................................................................ 47
STRATEGY ........................................................................................................................................................................ 48
PRIVATE LABEL ......................................................................................................................................................................... 48
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Retailer Overview
In A Page
Total Banner Sales 2012
Global - USD 9.8 billion
United States Sales 2012
Total Sales - USD 9.8 billion
Sales CAGR 2007-2012
Global Sales - 6.43%
United States Total Sales - 6.43%
Number of Outlets 2012
Global - 7,442
United States - 7,442
Chairman & CEO
Mr Howard R Levine
Website
www.familydollar.com
Summary
Family Dollar is one of the fastest growing discount store chains in the United States. The merchandising strategy that drives this
growth provides customers with good values on basic merchandise for the family and home in a small-box, neighbourhood format.
Store Formats
Expansion Strategy
Family Dollar has a near-national presence. The retailer plans net new store growth of 5%-7% in FY 2013, which was achieved in FY
2012, Much of its growth will focus on the west coast as the retailer opened its first stores in California in early FY 2012 (late CY 2011)
with plans for as many as 1,000 stores in the state. Additional new markets in fiscal 2013 include Oregon, Washington and Montana. A
planned distribution centre under construction in Utah (estimated opening date of summer 2013) will support future west coast
expansion. Family Dollar also is growing its Midwest presence supported by a new DC that opened in Indiana in June 2012.
As of 29 September 2012, Family Dollar's top five states in terms of store count included: Texas, Florida, Ohio, North Caroli na and
Michigan.
Family Dollar site criteria and building requirements:
- Approximately 7,000-10,000 square feet (650-929 sq. metres) including sales area and stockroom
- Adequate parking for 25 or more cars
- Conveniently located to value oriented, low to middle income customers
Retailer Profile - Family Dollar Stores in USA
- Food store anchored neighborhood shopping centers, convenience strip centers, freestanding buildings, or storefront locations
Structure & Key Contacts
Ownership
Family Dollar, one of the fastest growing discounters in the USA, is a public company listed on the New York Stock Exchange.
Family Dollar named Trian Partners co-Founder, Edward P Garden, to its executive board in September 2011 as part of an
arrangement to limit the investment company’s share of the discount retailer. The agreement means that Trian will not be able to
increase its stake in Family Dollar above 9.9% from its current 8.29%. It came seven months after Trian’s offer to acquire the retailer for
USD7.75 billion was refused as it was thought not to be in Family Dollar’s best interests.
Management
Mr Howard R Levine
Chairman & CEO -
Mr Michael Bloom
President & COO -
Mr Barry W Sullivan
Operations Director - EVP Store Operations
Mr Charles S Gibson, Jr.
Director Supply Chain Management - EVP Supply Chain
Mr Joshua R Jewett
Chief Information Officer - SVP
Mr Kevin Boyanowski
Senior Vice President Procurement - - Global Sourcing
Mr Jocelyn Wong
Marketing Director - Chief Marketing Officer
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Retailer Profile - Family Dollar Stores in USA
Mr Paul White
Merchandising Director - EVP & Chief Merchandising Officer
Ms Mary Winston
Chief Financial Officer - & EVP
Mr Thomas M Nash
Property Director - Senior Vice President - New Stores
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Contact Details
Country Head Office Address
Family Dollar Stores, Inc.
P.O. Box 1017
Charlotte, North Carolina
28201-1017
United States
Tel: (704) 847-6961
Web: www.familydollar.com
Family Dollar
Discount variety stores
Family Dollar Stores, Inc.
P.O. Box 1017
Charlotte, North Carolina
28201-1017
Tel: (704) 847-6961
Web: www.familydollar.com
Strategy
Strategic View
2013 Strategy
Family Dollar will continue its accelerated new store growth strategy with a target of 5-7% net new store growth a year. In 2013, Family
Dollar plans to open 500 new stores – following the 475 opened in 2012 – and renovate, relocate, or expand 850 stores (the same as
was done in 2012). Family Dollar anticipates that within the next couple years, the entire chain of stores will have been refreshed.
Family Dollar entered the California market in fiscal 2012, opening a total of 41 stores in the state. Long-term plans call for as many as
1,000 stores in California. Additional new markets in fiscal 2013 include: Oregon, Washington and Montana.
The retailer’s 11th distribution centre is under construction in St George, Utah, which will support West Coast expansion and is
expected to open in the summer. The facility will generate approximately 450 full-time jobs. Construction of the 800,000 square foot
(73,000 square metre) depot started summer 2012 following the opening its 10th distribution centre in Ashley, Indiana. In total, Family
Dollar's 2013 CapEx budget is USD600-650 million, staying relatively flat from USD603 million spent in 2012.
Enhancing and expanding the consumables offer remains a focus for Family Dollar in fiscal 2013, propelled forward by the September
partnership launched with buying group McLane. The exclusive six year partnership will allow Family Dollar to offer a more consistent
assortment of products across the chain. The retailer will look to continue growing its SKU count succeeding the momentum gained in
fiscal 2012 as it focuses on offering an improved merchandise assortment that is more competitive and relevant to its customers. Family
Dollar’s consumables sales rose by more than 13% to 69% of total sales in FY 2012 and the retailer expects the trend to endur e in FY
2013.
While the consumables, seasonal and electronics categories grew in FY 2012, the home, apparel and accessories categories fell. As a
result, Family Dollar will focus on driving profitability and improving inventory productivity in the ailing departments. Fam ily Dollar will
also look to further increase its private label penetration with a focus on consumables. The retailer expects to launch new brands as
well as refresh existing brands.
Further focus will be on driving customer loyalty by improving store level processes, efficiency and productivity as well as improve its instocks. Global sourcing will be an additional focus as Family Dollar further integrates its new international offices in Hong Kong and
Shenzhen and looks to open an office in Shanghai, China. The retailer doubled its direct-to factory purchases in fiscal 2012 and plans
to bring that purchase type from 4% in 2012 to 13% in 2015.
Planet Retail View

Family Dollar is a growth story. Sales are up. It is posting solid same store sales growth. It is accelerating new store growth. It is
growing both national brands and private label programs. Consumables merchandise is becoming a bigger portion of the retailer's
overall sales mix. The company plans to increase its penetration of middle-income shoppers. Planet Retail is upbeat about the
retailer's future prospects.

Plenty of store expansion opportunities remain, especially on the west coast. However, Family Dollar will face intense and growing
competition from a host of other retailers and formats, including other growth-minded value channel retailers (i.e., Dollar General,
Dollar Tree, Aldi); Walmart; and drugstores that are working furiously to fill in urban gaps.

Family Dollar is working hard to improve shopability of stores. It has invested to overhaul existing stores through a massive store
remodeling program, which is nearly complete. Family Dollar has reported that it not only is attracting more shoppers into its
stores, but also on a more frequent basis and getting them to spend more. All trends that bode well for future performance.

The retailer is enhancing and expanding its brand presence - both bolstering national brand representation and private label
penetration. The proportion of sales coming from food and grocery continues to increase. The key watch out here: Family Dollar
must figure out how to protect margins since much of its growth is coming from low-margin consumables. It has the opportunity to
enhance treasure hunt-type merchandise offer, especially as the US economy improves and shoppers begin spending more on
general merchandise, including apparel and home items.
Key Initiatives
Retailer Profile - Family Dollar Stores in USA

Maintain new store expansion (500 new store growth) with a focus on the California market

Roll out more "consumer-centric" stores (both new stores and existing store remodels) to conform with uniform design and layout,
and offer shoppers an improved shopping experience

Continue expansion of consumables assortment, adding more food and basic household items, i.e., health & beauty, pet, etc.

Increase private label penetration, especially consumables, and intro new ranges

Expand global sourcing activities with a focus on direct-to-factory purchases (from 4% in 2012 to 10% in 2015)

Drive profitability of the ailing home, apparel and accessories categories
SWOT
Strengths
Small-box convenience/value proposition
“Right” strategy in place: store locations; merchandising; move toward standardized and centralized execution
Attracts core base of financially strapped consumers yet moving toward broader shopper appeal
Growing emphasis on consumables merchandise, including food, health & beauty, pet, and other basic household essentials
Balanced brand strategy: More national brands; Strong private brands to support value statement
Investments in infrastructure/systems positions for growth and productivity gains
Weaknesses
Cash position not as strong as other leading value retailers; but increases in operating margin is a good sign
Lost ground to key competitors in terms of store expansion to instead invest/focus on internal issues in recent years
Out-of-stock issues remain a concern
Heightening gross margin pressure with mix shift toward low-margin consumables
Core shoppers = lowest-income shoppers; limits ability to increase basket size in down economy
Lags other value channel leaders in e-commerce/ multi-channel retailing
Opportunities
Plenty of expansion runway remains, especially west of Rockies
Upside potential to increase comp-store sales, particularly via ongoing store remodeling program
Improve in-stock position and inventory management to increase sales and comps
Extend reach and appeal to attract more shopper niches and shopper segments (i.e., ethnics/Hispanics)
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Retailer Profile - Family Dollar Stores in USA
Foresight to incorporate shopper insights (ShopperGauge Learning Labs) into planning process could lead to better in-store experience
for shoppers
Some new blood in top ranks could “change things up”
Threats
Increasing geographic/competitive overlap with Walmart, others (i.e., drugstores) in food space
Intense competition, especially price competition for basic household items, as Walmart recommits to EDLP and other grocers increase
price investments
Rising costs (commodities, fuel, labor) pressure margins and business model in terms of ongoing ability to deliver low-price promise
Potential for shopper trade-up to other retailers and channels with improving economic conditions
Big-box retailers developing/testing small-box formats
Land rush in under- and un-penetrated geographies (i.e., West Coast) to acquire “best” real estate
Marketing
Marketing Strategy
The company’s “everyday low price” strategy relies on offering consistently low prices on its products and utilising limited advertising
and promotional activity. In recent years, however, Family Dollar has increased its advertising and marketing efforts. Advertising costs,
net of co-op recoveries from vendors, totalled USD19.6 million, USD17.1 million and USD12.4 million in fiscal 2012, 2011 and 2010,
respectively.
The company traditionally advertises through circulars available in stores or, occasionally, circulars that are inserted in newspapers or
mailed directly to consumers’ residences (one-two per year). Going forward, the company intends to drive greater awareness of private
brands through increased marketing and visual merchandising support.
Family Dollar also is adding more product information and educational content to its website (e.g., how-to videos, recipes, etc.). Family
Dollar lags other value chains (e.g., Dollar General and Dollar Tree) in its use of social/mobile media, but it is making progress. A recent
Facebook promotion encouraged shoppers to “like” Family Dollar on Facebook and receive a USD5 coupon in return. Shoppers can opt
to receive mobile alerts of special offers from Family Dollar.
Family Dollar selected Marketing Management Inc (MMI) for help in private brand sourcing, product development, category analytics,
assortment strategy, quality assurance and customer insights in 2011. The company also chose Bernstein-Rein Advertising of Kansas
City, MO, as its first agency of record in 2010. Billings were not disclosed. Bernstein-Rein, which is a former creative agency for
Walmart, handles tasks for Family Dollar like creative, media planning and buying, and digital work.
Pricing Strategy
Family Dollar calls its pricing strategy EDVP - every day value pricing. It primarily operates an EDLP strategy with fixed price points most items sell for below the USD10 price point - but also augments with promotional deals to drive home the value message.
Private Label
Private Label Strategy
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Retailer Profile - Family Dollar Stores in USA
Family Dollar features national brands, but also mid-tiers and private brands to provide credible trade-down options to shoppers. The
retailer offered 1,000 private label SKUs in 2012, up from 600 in fiscal 2010. It anticipates doubling private label SKU count by fiscal
year 2015 to 2,000 and has set the goal of introducing 500 new private label consumables SKUs in fiscal 2013. Family Dollar expects to
launch new brands in 2013 while also refreshing some of its existing brands. The retailer intends to drive greater private label
awareness through increased marketing and visual merchandising support.
During fiscal 2012, nationally advertised brand name merchandise accounted for approximately 56% of sales. Merchandise sold under
Family Dollar's private label programme, across all merchandise categories, accounted for approximately 25% of sales, increasing 9%
over fiscal 2011. Private label consumables sales performed the best, increasing by 16% over fiscal 2011, and represented
approximately 17% of total consumable sales. Merchandise sold under other labels, or which was unlabeled, accounted for the balance
of sales. During fiscal 2012, closeout merchandise accounted for approximately 1% of sales.
As customers become more budget-conscious, they value quality private label products at compelling price points. Consequently, the
retailer is expanding its assortment of private label merchandise to reinforce its value perception and to enhance profitabil ity. Family
Dollar merchandises national and private brands side-by-side, frequently promoting value associated with lower-priced store brands.
The company made progress with the introduction of its Family Pantry range of private label grocery products. Encompassing no nperishable products such as plastic bags, cleaning products, peanut butter, confectionery, snacks, condiments and tinned fruit and
vegetables, the range is slated for further expansion. The Family Pantry range has been augmented through the addition of Family
Dollar Savings for health, beauty and paper products, while Family Dollar Values has been introduced in general merchandise
categories. Other PL lines include Highland Outfitters clothing and the upscale Family Gourmet range.
Family Dollar has used Marketing Management Inc (MMI) for help in private brand sourcing, product development, category analytics,
assortment strategy, quality assurance and customer insights since 2011.
Key Private Labels
Family gourmet
All products are tested against a national-brand equivalent, and backed with a guarantee that the full purchase price will be refunded if
the buyer is not satisfied with the quality. “Lower your price, not your standards,” is the brand’s tagline.
Kidgets
A USD10-and-under private label clothing and accessories line for newborns and toddlers launched June 2010.
Buying
Buying Strategy
During fiscal 2012, nationally advertised brand name merchandise accounted for approximately 56% of sales. Merchandise sold under
Family Dollar's private label programme, across all merchandise categories, accounted for approximately 25% of sales. Merchandise
sold under other labels, or which was unlabeled, accounted for the balance of sales. During fiscal 2011, closeout merchandise
accounted for approximately 1% of sales.
Family Dollar purchases merchandise from a wide variety of suppliers, around 1,250. In fiscal 2012, no single supplier accounted for
more than 9% of the merchandise sold by the company. Approximately 24% of the merchandise was manufactured overseas, while
approximately 10% was imported and around 14% was purchased from domestic suppliers.
To manage global pricing pressures and mitigate the pressure from increased sales of lower-margin consumable merchandise, Family
Dollar has enhanced its global sourcing efforts. In fiscal 2011, the company opened sourcing offices in Hong Kong and Shenzhe n,
China and expanded the teams in fiscal 2012. In fiscal 2013, Family Dollar expects to open an office in Shanghai, China. As a result of
these investments, the retailer increased its direct imports by more than 40% in fiscal 2012, as compared to fiscal 2011. In fiscal 2013,
Family Dollar plans to continue expanding its Global Sourcing teams, develop stronger processes to help it integrate its sourcing
activities with its category management efforts and continue to expand its supplier network.
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Retailer Profile - Family Dollar Stores in USA
Family Dollar continues to focus on lowering operating expenses through investments in centralized procurement. The creation of a
centralized procurement organization has enabled it to better leverage its buying power, and through the utilization of an online
procurement tool and careful review of processes, the retailer has been able to reduce many of its store-level expenses. Improvements
in associate retention have resulted in lower workers’ compensation and general liability costs, as well as lower training an d
development costs.
Buying Groups
Family Dollar partnered with US buying group McLane in 2012. The partnership allows Family Dollar to offer a wider range of products
as well as tailor the merchandise to meet local market demands. Family Dollar will also have the ability to grow its refrigerated and
frozen food offer with a national supply chain that will involve 19 of McLane’s distribution centers.
Sustainability
Supply Chain
Family Dollar joined the Environmental Protection Agency’s SmartWay program in 2009. This program is the voluntary collaboration
between government, shippers, carriers, and logistical companies in order to reduce Green House Gas emissions from the freight
transportation industry. While working with SmartWay, Family Dollar has worked to increase the amount of freight that is moved by
railway, increase the cube and weight per shipment to utilize space in the trailer, focus on load consolidation and better vendor
shipment points, and increase the number of SmartWay carrier partners.
Store Design
Family Dollar Stores have installed the Survey Energy Management Systems (EMS) by Venstar, which allows for a centralized control
of HVAC and lighting and extensive reporting on energy use. Stores with the system have averaged 18.1% savings in electric use in the
first year of operation. The company has hopes of even more savings as the system continues to be tweaked and improved.
Family Dollar has also changed specifications for new and existing store design plans to be more environmentally friendly. The
company has changed the specification for exterior store lights, low VOC paint, timer controlled faucets, high-speed hand dryers, dual
flush toilets, and polished concrete floors in order to increase energy savings.
Recycling & Waste Management
The main distribution centers focus on recycling, storing all solvents on secondary containment pallets to eliminate potential spills into
storm drains, and building containment walls where necessary. The distribution centers recycle approximately 26 tons of cardboard per
week and 13 tons of plastic per month, along with recycling metal, used diesel fuel, forklift batteries, fluorescent lights, and ballasts.
Shopper Insights
Shopper insights
The average Family Dollar store has over 2,000 customers per week. As of July 2012, this means Family Dollar attracts 14+ million
customers into its stores on a weekly basis.
The stores and their merchandise are targeted at the basic needs of customers primarily in the low and lower-middle income brackets.
Typically, a Family Dollar store serves the basic needs of customers primarily in the low and middle income brackets. Typically, the
customer is a female head-of-household.
Characteristics of the core Family Dollar shopper:
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Retailer Profile - Family Dollar Stores in USA
- 56% earn less than USD40,000 a year; 25% have annual income of less than USD20,000
- Skew older: 72% of shoppers are 45+
- Skew ethnic: 35% of shoppers are African American or Hispanic
- High-school education or less
- Non-traditional family households
- Over-index in gov’t assistance
Characteristics of the "trade-in" Family Dollar shopper:
- Earns between $40,000 - $70,000 a year;
- Slightly younger: 70% of shoppers are 45+
- Less of an ethnic skew
- Expect higher in-store standards
Category Insights
Category insights
Percentage of net sales by product category as of fiscal year end 2012 (2011):
Consumables - 69% (66.5%)
Home Products - 11.4% (12.7%)
Apparel and Accessories - 8.8% (10.%)
Seasonal and Electronics - 10.8% (10.8%)
Category definitions:
Consumables - Household chemicals, paper products, food, health & beauty aids, hardware and automotive supplies, pet food and
supplies and tobacco. Home Products - Domestics (including blankets, sheets and towels), housewares, giftware and home décor.
Apparel and Accessories - Men’s clothing, women’s clothing, boys’ and girls’ clothing, infants’ clothing, shoes and fashion accessories.
Seasonal and Electronics - Toys, stationery and school supplies, seasonal goods and personal electronics (including pre-paid cellular
phones and services).
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Financial Review
Financial Analysis
Financial Statements
2002
Sales for in fiscal 2002 amounted to USD4,162.7 million, an increase of 13.6% compared to 2001. Net income was 14.5% higher at
USD216.9 million. This impressive performance was attributed to a sharp increase in the number of stores in addition to a favourable
customer response to wider ranges of consumables in food, household chemicals and paper products. This was achieved by reducing
space allocated to shoes.
2003
Q1 – Family Dollar Stores has reported that sales in the first quarter of fiscal 2003 were up by 13.5% at USD1.1 billion. The
growth was buoyed by same-store growth of 3.0%. Net income was reached USD57.5 million, or 14.5% above the first quarter of the
prior fiscal year.
H1 - Family Dollar Stores has reported figures for Q2 and H1 2003. In the first half, sales climbed by 13.6% to USD2.36 billion, with
comparable sales ahead by 3.0%. Net earnings were ahead by 14.2% at USD130.2 million.
Q3 - Family Dollar has reported record sales and earnings figures for Q3 2003. Sales were 15.1% higher at USD1.2 billion, with net
income climbing by 14.0% to reach USD69.6 million. Sales growth was attributed to store openings and like-for-like growth of 4.6%,
boosted by increases in customer count and average basket size.
FY 2003 - Family Dollar Stores has reported record sales and earnings for the fiscal year ended August 30, 2003. Sales were
USD4,750.2 million, an increase of 14.1%, while net income increased by an identical 14.1% to reach USD247.5 million. Sales growth
was attributed to new stores and a 3.8% comparable sales increase powered by a higher customer count and a 1.6% increase in
average transaction value (to USD8.87).
2004
FY 2004 - Sales for the 2004 fiscal year ended August 28, 2004, were USD5,281.9 million, an increase of 11.2%. Net income increased
by 6.1% to USD262.7 million. Sales in existing stores increased by around 1.9%, with the customer count up by 0.7% and the average
spend 0.9% higher at USD8.95. Howard R. Levine, Chairman and CEO, stated that: "The 6.1% increase in net income in fiscal 2004
was achieved in a difficult economic environment for the company's low to low-middle income customer base. While we did not achieve
our targeted net income growth, we did continue to reinvest in the business."
Q4 - Family Dollar Stores has reported that sales for the fourth quarter to end August 28 2004 were USD1,324.2 million, a 9.6%
increase over Q4 2003. Same-store sales were up by 0.7%, while customer count was flat and average spend edged up by 0.5% to
USD8.70. Net income was USD43.0 million, or 9.9% lower than in the previous year. Gross margins were hit by weaker sales of
discretionary lines such as clothing.
Retailer Profile - Family Dollar Stores in USA
Q3 - Family Dollar Stores has reported record Q3 sales and earnings. Sales amounted to USD1,310.2 million, an uplift of 11.3%, while
net income improved by 6.0% to reach USD73.8 million. Comparable store sales edged up by 1.9%, with the bulk of sales growth
attributable to the retailer’s aggressive store opening programme.
Q2 - Family Dollar Stores has reported its Q2 figures, noting that sales were USD1,402.8 million, an increase of 11.7%, with same-store
sales increasing by 2.2%. Net profits amounted to was USD81.4 million, an improvement of 12.0%. The chain’s customer count
increased by around 1.0% and the average transaction increased approximately by a similar level.
Q1 - Family Dollar has reported the highest first quarter sales and earnings in its history, with Q1 sales ahead by 12.3% to USD1. 24
billion and net income 12.2% up at USD64.5 million. Sales growth was attributed to new stores and a comparable sales increase of
2.6%, helped by a higher customer count and increased average transaction value.
2005
FY 2005 - Family Dollar Stores has reported that, for the full fiscal year, net income was USD217.5 million or 15.7% below net income
of USD257.9 million in fiscal 2004. "Fiscal 2005 was a challenging year for our customer and for our Company," said Howard R. Levine,
Chairman and CEO. "Despite the macroeconomic challenges, we made significant progress on our key initiatives. We installed coolers
in approximately 1,000 stores, launched our new "Treasure Hunt" initiative which delivered strong holiday sales growth, opene d 500
new stores and implemented our Urban Initiative in approximately 1,200 stores. These strategic initiatives will provide the foundation for
our future profitable growth." Sales for the fiscal year ended August 27, 2005, were approximately USD5.825 billion, an incre ase of
10.3%. Sales in comparable stores for the full year increased 2.3%. The customer count, as measured by the number of register
transactions in comparable stores, decreased approximately 0.7% and the average transaction increased approximately 2.9% to
USD9.22.
Q4 - Sales for the fourth quarter were approximately USD1.430 billion, or 8.0% above sales of Q4 2004. Sales in comparable stores in
the fourth quarter of 2005 increased approximately 0.6%. The customer count, as measured by the number of register transactions in
comparable stores, decreased approximately 2.3%, and the average transaction increased approximately 2.9% to USD8.98. Net
income was USD29.2 million, or 30.0% below net income of USD41.7 million for the fourth quarter of the prior fiscal year.
Q3 - Family Dollar has stated that sales for the third quarter were 9.0% higher at USD1.428 billion for the third quarter. Sales in
comparable stores increased by approximately 1.3%. The customer count, as measured by the number of register transactions in
comparable stores, decreased approximately 1.5% and the average transaction increased approximately 2.6% to USD9.10. Net income
was USD53.8 million, 25.7% below net income in Q3 2004. "As we indicated in our comments at the beginning of this fiscal year, we
expected the third quarter to be our most challenging quarter of the year as a result of anticipated gross profit margin pressure and
planned investments in our key initiatives. Unfortunately, the challenging sales environment this Spring, resulting from unseasonably
cool weather and a difficult economy for the Company's low and low-middle income customer, aggravated the operating profit margin
pressures in the quarter," said Howard R. Levine, Chairman and CEO. "However, we continue to be pleased with the early result s of
our major initiatives.
Q2 - Family Dollar Stores has reported that sales for its second quarter were approximately USD1.587 billion, an increase of 13.1%.
Net income was USD80.1 million, or 0.4% lower than in Q2 2004. Sales in comparable stores in the second quarter of 2005 increased
by 4.5%, while the customer count was up by 0.7% and the average transaction increased by approximately 3.7% to USD9.87.
Q1- Family Dollar has reported that sales for the first quarter to end-November 2004 were up by 10.8% at around USD1.380 billion,
with net income sliding by 14.1% to USD55.4 million. Sales growth was attributed to comparable sales growth of 2.5% (1% of which is
estimated to have been generated by an advertising circular distributed in the first week of November) and to sales in new stores
opened as part of the company's store expansion programme. The number of transactions in existing stores increased by
approximately 0.3% and the average transaction value increased approximately 2.2% to USD8.91. Howard R. Levine, Chairman and
CEO, stated that: "During the first quarter good progress has been made on the four key initiatives that our company is focusing on in
fiscal 2005. As previously announced, we believe the urban initiative, the addition of "treasure hunt" merchandise, the inst allation of
coolers in selected stores and the continuation of an aggressive new store opening programme will be the growth engines that will drive
increases in sales and earnings.”
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Retailer Profile - Family Dollar Stores in USA
2006
FY 2006 - Family Dollar has reported full year results, noting that sales amounted to USD6.395 billion, an increase of 9.8%. Sales of
consumable merchandise and electronics, including pre-paid cellular phones and services, were the primary drivers of the sales
increase. Sales in comparable stores increased approximately 3.7%. The customer count, as measured by the number of register
transactions in comparable stores, decreased approximately 1.2%, and the average transaction increased approximately 4.8% to
USD9.66. During fiscal 2006, the company opened 350 new stores and closed 75 stores. “Two years ago, Family Dollar began
aggressively investing in three key initiatives designed to drive sales and profitability: an enhanced food strategy, the Tre asure Hunt
merchandise programme and the Urban Initiative. These investments provided the foundation for this year's improved results,” said
Howard R. Levine, Chairman and CEO. Net income in fiscal 2006 was USD201.7 million compared with USD217.5 million in fiscal
2005. Included in results for fiscal 2006 is a litigation charge of USD45.0 million associated with an adverse litigation judgment that the
company intends to appeal.
Q4 - Sales for the fourth quarter of fiscal 2006 were approximately USD1.578 billion, ahead by 10.3%. Sales of food, apparel and
electronics, including pre-paid cellular phones and services, were the primary drivers of the sales increase. Sales in comparable stores
increased approximately 4.9%. The customer count, as measured by the number of register transactions in comparable stores,
decreased approximately 0.5%, and the average transaction increased approximately 5.2% to USD9.45. Net income for the fourth
quarter increased 32.9% to USD38.8 million compared with net income of USD29.2 million for the fourth quarter of fiscal 2005.
Q3 - Family Dollar has reported that net income for the third quarter increased 5.8% to USD56.9 million on sales of 9.9% higher at
USD1.57 billion. Sales in comparable stores increased approximately 3.7%. The customer count, as measured by the number of
register transactions in comparable stores, decreased approximately 1.2%, and the average transaction increased approximately 4.8%
to USD9.54. The company stated that customers continue to consolidate shopping trips in response to higher energy costs. "We are
pleased to report a 16% increase in earnings per share this quarter, especially in light of a challenging macro-economic environment,"
said Howard R. Levine, Chairman and CEO. "We have made significant progress this year, but we still have a lot of work to do.
Continued execution of our key initiatives will enable us to better meet the needs of our customers and drive stronger returns to our
shareholders."
2006 - Q2 - Family Dollar has reported that net income for the second quarter was USD54.5 million compared with net income of
USD80.1 million for the second quarter of fiscal 2005. Included in results for the second quarter of fiscal 2006 is a litigation charge of
USD45.0 million associated with an adverse litigation judgment in a case in Tuscaloosa, Alabama announced in March 2006. The
company intends to appeal the verdict. Sales in Q2 were USD1.736 billion, an increase of 9.4%. Sales in comparable stores inc reased
3.2%. The customer count, as measured by the number of register transactions in comparable stores, decreased approximat ely 1.0%,
and the average transaction increased approximately 4.2% to USD10.28. "The initiatives that we launched last year are now providing a
solid foundation supporting comparable store sales growth. This, along with better than planned gross margin and expense control
drove above plan operating results for the second quarter, excluding the legal charge," said Howard R. Levine, Chairman and CEO.
Q1 - Family Dollar has reported that net income for the first quarter of fiscal 2006 was USD51.4 million, or 5.5% below net income of
USD54.4 million for the first quarter of fiscal 2005. Sales for Q1 were approximately USD1.511 billion, an increase of 9.5%. Sales in
comparable stores increased approximately 3.0%. The customer count, as measured by the number of register transactions in
comparable stores, decreased approximately 2.1%, and the average transaction increased approximately 5.1% to USD9.36. “Last year,
our company made significant investments in four key initiatives: the installation of refrigerated coolers, the Urban Initiative, the
Treasure Hunt merchandise programme, and new stores. This year, we are accelerating investment in initiatives that performed well
and are focusing efforts to improve initiatives that did not fully meet our expectations," said Howard R. Levine, Chairman and CEO.
"While the macro-economic environment continues to be challenging for our customers, we are executing against our plan and
experiencing positive results.”
2007
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Retailer Profile - Family Dollar Stores in USA
FY 2007 - Sales for fiscal 2007 were USD6.834 billion, or 6.9% above sales of approximately USD6.395 billion for fiscal 2006. Fiscal
2007 included 53 weeks, compared with 52 weeks in fiscal 2006. Sales in comparable stores increased approximately 0.9%. Net
income in fiscal 2007 was USD242.9 million compared with ISD195.1 million in fiscal 2006. Howard R. Levine, Chairman and CEO,
noted that: "Volatile energy costs and other inflationary pressures have impacted the spending capacity of low and low-middle income
consumers. In the face of these challenges, we continue to manage our business with a longer-term perspective, making significant
investments in our business. In fiscal 2007, we expanded our cooler programme to 5,100 stores, enhanced the food assortment in our
stores, and expanded the selling space for food in 2,700 stores. We also continued to improve our Treasure Hunt strategy through the
refinement of our seasonal, apparel and home assortments and through the strengthening of our promotional, advertising and
markdown strategies. Finally, we opened 300 new stores and continued to invest in our urban operations with the installation of new
store technology in approximately 750 urban stores.”
Q4 - Family Dollar has reported that net income for the fourth quarter of fiscal 2007 increased 17.0% to USD37.8 million. "Despite a
challenging economic environment, our team has delivered a solid performance this year. The commitment and hard-work of all our
dedicated associates has resulted in improvements in many of our key financial metrics, including earnings per share, return on
shareholders' equity, inventory productivity and Associate retention," said Howard R. Levine, Chairman and CEO. Sales for Q4 were
approximately USD1.632 billion, an increase of 3.4%. Sales of food and certain seasonal categories, primarily toys, were the primary
drivers of the sales increase. Sales in comparable stores increased approximately 1.0%.
Q3 - Family Dollar has reported financial results for the third quarter ended June 2, 2007. Sales increased 5.4% to USD1.7 billion while
comparable store sales were up 1.5%, primarily driven by an increase in the average customer transaction amount. Net income rose
6.1% to USD60.4 million. "Over the last two years, we have slowed new store growth and accelerated investments in other areas.
Thanks to the dedication and hard work of all of our associates, we have seen improvement in many of our key financial metrics,
including earnings per share, return on shareholders' equity and inventory productivity," said Howard R. Levine, Chairman and Chief
Executive Officer. "Our focused investment agenda has positioned us to be more competitive in today's challenging economic
environment. As we continue to invest to improve our operational execution and enhance the shopping experience for our customers, I
continue to be excited about the opportunity for Family Dollar."
Q2 - Family Dollar has reported that sales for the second quarter of fiscal 2007 were approximately USD1.947 billion, or 12.2% abo ve
sales of approximately USD1.736 billion for the second quarter of fiscal 2006. Same-store sales increased by approximately 0.4%. The
increase in comparable store sales was a result of an increase in the average customer transaction amount, which offset a decline in
customer traffic, as measured by the number of register transactions. During fiscal 2007, the Company expects to open approximately
300 stores and close 45 stores. As a result of the ongoing rollout of the Company's food strategy, the impact from "Treasure Hunt"
merchandise sales and a continued focus on driving better returns in the Urban Initiative markets, the Company expects comparable
store sales to accelerate modestly during the remainder of the 53-week fiscal year ending September 1, 2007. For the full year, the
Company expects comparable store sales to increase 1-3%
Q1 - Family Dollar has reported preliminary financial results for the first quarter of fiscal 2007 ended November 25, 2006. Net income
for the first quarter was USD54.4 million, or 5.8% above net income of USD51.4 million for the first quarter of fiscal 2006. Net sales for
the first quarter of fiscal 2007 were approximately USD1.60 billion, or 5.9% above sales of approximately USD1.51 billion for the first
quarter of fiscal 2006. Sales in comparable stores, adjusted for prepaid cellular services, increased approximately 0.9% in the first
quarter of fiscal 2007. The increase in comparable store sales was a result of an increase in average customer transaction, which offset
a slight decline in customer traffic, as measured by the number of register transactions. "As a result of the dedicated efforts of all our
hard-working Associates, Family Dollar is providing customers with a better shopping experience," said Howard R. Levine, Chairman
and CEO. "During the last several quarters, we have lowered inventory levels and improved our merchandising presentations."
2008
FY - Sales for fiscal 2008 were USD6.984 billion, a 2.2% increase. Sales in comparable stores increased 1.2%. During fiscal 2008, the
company opened 205 new stores and closed 64 stores. Mr. Levine concluded by saying: "While we are not immune to the current
economic conditions, our strategy of providing customers with value and convenience positions us well within today's environment. We
remain excited about the long-term opportunity of our niche and will continue to invest in building merchandising capabilities and
operating efficiencies to drive increased shareholder value," said Chairman and CEO Howard Levine.
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Retailer Profile - Family Dollar Stores in USA
Q4 – “fourth quarter sales benefited from the effect of the government stimulus checks distributed this summer. Strong sales of
consumables and effective management of inventory risk, combined with disciplined expense control resulted in robust earnings
growth," said Chairman and CEO Howard Levine.
Net income for the fourth quarter of fiscal 2008 increased 40.7% to USD53.2 million. Net sales for Q4 were USD1.766 billion, an 8.2%
increase. Sales in comparable stores increased 5.6%.
Q3 – Family Dollar has reported that net sales increased by 2.9% to USD1.702 billion. Comparable store sales were up 0.1%, and an
increase in the average customer transaction offset lower customer traffic. Gross profit represented 34.6% of sales, compared to 34.9%
a year ago, as a result of stronger sales of lower-margin consumable merchandise. Net income increased by 7.1% to USD64.7 million.
“Today, more Americans are looking for value and convenience, and our stores are well-positioned to meet that need. Our investments
in key consumable areas are providing customers with great values on the basic items they need every day, and our small,
neighbourhood stores are very convenient for customers in this environment of rising gasoline prices,” said chairman and CEO Howard
R Levine. For Q4, Family Dollar expects that comparable store sales will be up 4% to 6% compared to 2007. The company also
anticipates that sales of consumables will continue to drive comparable store sales increases. For FY08, the company plans to open
about 200 new stores and close approximately 75 locations.
Q2 - Family Dollar has reported net income of USD63.3 million for the 13-week second quarter of fiscal 2008, compared with USD90.5
million for the 14-week second quarter of fiscal 2007 ended March 3, 2007, a 14-week period. “Our customers continue to react to the
current economic environment by limiting their discretionary spending. This was particularly apparent in our stores during this past
holiday season. In addition, our second quarter performance was pressured by both the loss of one week of holiday sales and o ne less
week of sales as compared with the second quarter of fiscal 2007.” said Howard R. Levine, Chairman and Chief Executive Officer.
“While we continue to expect that our customers will be financially challenged near-term, we believe that the impending government
stimulus package will bring some much needed relief later this year. Continued growth in our consumable business, along with our
intense focus on controlling expenses and mitigating inventory risk are expected to result in better performance in the second half of
fiscal 2008.” Net sales were USD1.833 billion, or 5.9% below sales of USD1.947 billion for the second quarter of fiscal 2007.
Comparing results for the same 13-week period year over year, net sales increased 3.2%, and sales in comparable stores were
approximately flat. An increase in the average customer transaction offset lower customer traffic, as measured by the number of
register transactions.
Q1 - Family Dollar has reported that net income for Q1 2008 quarter decreased 4.1% to USD51.9 million. Howard R. Levine, Chairman
and CEO noted that “While categories meeting every day consumable needs continued to perform well, our customers were more
restrained with their discretionary spending this quarter. Given the current economic environment, we do not expect this trend to
improve in the near term.” Sales for the quarter were approximately USD1,683.0 million, an increase of 5.2%. Sales in the first quarter
of fiscal 2008 were strongest in the consumables category, driven primarily by sales of food, and the seasonal and electronics category,
which benefited from the additional week of post-Thanksgiving sales compared with the first quarter of fiscal 2007. Sales of the apparel
and home products categories were weaker. Comparable store sales decreased approximately 1.0% in the first quarter of fiscal 2008, a
result of a decline in customer traffic.
2009
FY – Sales for fiscal 2009 were USD7.401 billion, or a 6.0% on the USD6.984 billion the sales for fiscal 2008. Sales in comparable
stores increased 4.0%. Family Dollar Stores saw net income increase 25% to USD291.3 million for the fiscal year, ended 29 August, up
on the USD233.1 million reported the year earlier. Operating profit, as a percentage of sales, was 6.1% in fiscal 2009 compar ed with
5.2% in fiscal 2008. The increase in comparable store sales was the result of higher customer traffic, as measured by the number of
register transactions and an increase in the value of the average customer transaction. Sales in fiscal 2009 were strongest in the
consumables category. During fiscal 2009, the Company opened 180 new stores and closed 96 stores.
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Retailer Profile - Family Dollar Stores in USA
Q4 - US discount variety store operator Family Dollar has announced the financial results for the fourth quarter of its latest financial
year, ended 30 August 2009, saying that net sales increased 2.6% year-on-year to approximately USD1,811.4 million. Comparable
store sales for the fourth quarter increased 1.0%. Sales for the full year reached USD7,400.6 million, corresponding to 6.0% growth
year-on-year, and to 4.0% growth on a comparable store sales basis. At the end of the fiscal year, the company operated 6,655 outlets,
including 32 new stores opened during the quarter. Chairman & CEO Howard Levine said: “As expected, our fourth quarter sales
results were impacted as we anniversaried the effect of last year’s stimulus package. In addition, this quarter we continued our
aggressive pace of investments, and re-aligned space in approximately half our chain. Although the repositioning of categories to
create better merchandise adjacencies and expand our selection of consumables resulted in some temporary disruption, customers are
responding well to the improved shopping experience. We are pleased with the progress we have made and believe that these changes
position us well for continued growth in fiscal 2010.”
Q3 - Family Dollar has reported that net income for the third quarter increased 35.5% to USD87.7 million. “In today’s environment,
Family Dollar’s commitment to value has great appeal. Customers are shopping us more frequently and relying on us to meet more of
their basic needs. As a result, we continue to gain market share,” said Howard R. Levine, Chairman and CEO. “For fifty years, our
strategy of providing customers with value and convenience has enabled us to weather past recessionary cycles well. But, we also
have experienced strong growth during recovery periods as customers have increased their discretionary spend,” continued Levi ne.
“While we can’t predict when the current environment will improve, the investments we are making to be more relevant to our customers
and to improve the instore experience position us well to meet our customers’ evolving needs.” Net sales for the third quarter of fiscal
2009 were USD1.843 billion, up by 8.3%. Sales in comparable stores increased 6.2%. The increase in comparable store sales was a
result of increased customer traffic, as measured by the number of register transactions, and an increase in the value of the average
customer transaction. Sales in the third quarter of fiscal 2009 were strongest in the Consumables category. “At Family Dollar, we have
consistently reinvested in our business to drive stronger shareholder returns. Reflecting this strategy, we are investing aggressively in a
chain-wide store technology refresh which supports the acceptance of credit cards and food stamps. In addition, this quarter we are
initiating efforts to re-align space in our stores to accommodate strong customer demand and improve the instore shopping experience.
These investments will add incremental expense pressure in the fourth quarter but will position us to drive sustainable growth beyond
the current quarter,” concluded Mr. Levine.
Q2 - Family Dollar has reported that Q2 net income increased 32.9% to USD84.1 million. "In today's challenging economic
environment, families of all incomes are looking for ways to save money. Our strategy of providing both value and convenience
continues to resonate well with consumers, and, as a result, we continue to capture more shopping trips and gain market share," said
Howard R. Levine, Chairman and Chief Executive Officer. "While the current environment has resulted in more budget-minded
consumers, our strong performance is also the result of significant investments we have made to enhance the Family Dollar shopping
experience. Our multi-year focus on building and retaining great employee teams, improving merchandise quality, and enhancing the
shopability of our stores has positioned us well to serve our core customers better while also satisfying new customers who may be
visiting our stores for the first time," continued Levine. Sales were approximately USD1.992 billion, an increase of 8.7%. Comparable
store sales increased 6.4%. The increase in comparable store sales was a result of increased customer traffic, as measured by the
number of register transactions, and an increase in the value of the average customer transaction. Sales in the second quarter of fiscal
2009 were strongest in the consumables category.
Q1 - Family Dollar has reported that net income for the first quarter of fiscal 2009 increased 14.1% to USD59.3 million. “As more
families face financial challenges in this environment, they are relying on Family Dollar for more of their everyday needs,” said Howard
R. Levine, Chairman and CEO. “As a result, we’re gaining market share and driving both increased customer traffic and transaction
value. These results reflect our continued focus on providing value for our customers while also managing inventory risk and driving
overall profitability.” Sales for the first quarter of fiscal 2009 were USD1.754 billion, 4.2% higher. Comparable store sales increased
2.1%. The increase in comparable store sales was a result of an increase in the average customer transaction value and higher
customer traffic, as measured by the number of register transactions. Sales in the first quarter of fiscal 2009 were strongest in the
consumables category, driven primarily by sales of food. In an update on holiday trading, Levine noted: “Despite the economic
pressures, customers clearly appreciated the great values we offered this holiday season. For the December reporting period, net sales
increased approximately 8% and comparable store sales increased approximately 6%. Although consumables continued to be strong,
our selective investments in key discretionary categories, particularly toys, made Christmas this year more affordable for many
families.”
2010
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Retailer Profile - Family Dollar Stores in USA
FY 2010 - Sales for fiscal 2010 were USD7.867 billion, 6.3% above sales of USD7.401 billion for fiscal 2009. Sales in comparable
stores increased 4.8%, which was the result of higher customer traffic, as measured by the number of register transactions. The value
of the average customer transaction was approximately flat. Sales in fiscal 2010 were strongest in the consumables and the seasonal
and electronics categories. During fiscal 2010, the company opened 200 new stores and closed 70 stores.Net income for the year
increased 23.0% to USD358.1 million compared with net income of USD291.3 million in fiscal 2009. “Our efforts to broaden the appeal
of our assortment, improve the instore shopping experience, enhance our customer communications, and strengthen our employee
teams, resulted in strong improvements across most key metrics,” said Howard R. Levine, Chairman and Chief Executive Officer.
Q4 - Net sales for the fourth quarter of fiscal 2010 were USD1.957 billion, 8.0% above sales of USD1.811 billion for the fourth quarter of
fiscal 2009. Sales in comparable stores increased 6.1%. The increase in comparable store sales was a result of an increase in
customer traffic, as measured by the number of register transactions. Sales in the quarter were strongest in the consumables category.
During the quarter, the company opened 75 stores and closed 14 stores.Net income for the fourth quarter of fiscal 2010 increased
23.0% to USD74.0 million, compared with $60.1 million for the fourth quarter of fiscal 2009.
Q3 - Family Dollar has reported that Q3 net income increased 19.0% to USD104.4 million. “We continue to deliver greater value for our
customers while improving their shopping experience in our stores. As a result, more and more consumers are finding the savin gs they
need at Family Dollar,” said Howard Levine, Chairman and CEO. “Our revenue growth has accelerated nicely, and I am pleased to
report our ninth consecutive quarter of double-digit earnings per share growth.” Sales for the third quarter of fiscal 2010 were
approximately USD1.997 billion, an increase of 8.4%. Comparable store sales increased 7.0%. The increase in comparable store sales
was a result of increased customer traffic, as measured by the number of register transactions. Average transaction value for the
quarter was flat. Sales were strongest in the Seasonal and Electronics and Consumables categories.
Q2 - US fixed-price retailer Family Dollar Stores saw its net profit for the second quarter of fiscal 2010 increase 33.4% to USD112.2
million compared with net profit of USD84.1 million for the same period of 2009. Sales for Q2 reached USD2.09 billion, 4.9% above
sales in the second quarter last year. Comparable store sales increased 3.6%. The gross profit margin, as a percentage of sales, was
35.4%, up from 33.7%, thanks to higher purchase mark-ups and reductions in markdown expenses, freight expenses and inventory
shrinkage. "We have invested significantly to improve processes, build merchandising capabilities and stabilise our workforce, and
these investments are clearly delivering results,” Howard R Levine, Chairman and Chief Executive Officer, said. "I am pleased to report
that the sales momentum we saw in the second quarter has continued through March.” For the third quarter, the retailer expect s that
comparable sales will increase 6-8%.
Q1 - Family Dollar reported that net sales increased 3.9% to USD1.82 billion for the first quarter ended 28 November 2009, up on the
USD1.75 billion it reported in the same period a year ago. Comparable store sales increased 2.4% and the company had 6,665 stores
as of 28 November. Net income for the first quarter of fiscal 2010 increased 14.0% to USD67.6 million compared with the first quarter of
fiscal 2009. Sales were strongest in the consumables category. For the second quarter, the company expects that comparable sales
will increase 2-4%. For the full fiscal year, the retailer expects total net sales to increase 4-6%. "Customers are responding well to the
investments we are making to improve the shopping experience in our stores. We are pleased that customer traffic increased again this
quarter. Reflecting continued economic pressures, average transaction value was flat," said Howard Levine, Chairman and CEO.
2011
FY - Fiscal year net sales for 2011 increased 8.7% to USD8.55 billion, and were strongest in the consumables category. Comparable
store sales increased 5.5%, which resulted from higher customer traffic and average customer transaction values. During fiscal 2011,
the company opened 300 new stores and closed 62 stores.
“In fiscal 2012, we intend to accelerate investments to drive sales and profitability. We plan to open 450-500 new stores, a more than
50% increase over fiscal 2011 openings. We also intend to renovate, relocate or expand over 1,000 stores,” said Howard R. Levine,
Chairman and Chief Executive Officer.
Q4 - Family Dollar has announced that net sales for the fourth quarter ended 27 August, 2011 were USD2.13 billion, an increase of
9.1% from the fourth quarter in 2010. Comparable store sales increased by 5.6% in the fourth quarter due primarily to an incr ease in
customer traffic and average customer transaction values. Sales in the quarter were strongest in the consumables, seasonal, and
electronic categories.
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Retailer Profile - Family Dollar Stores in USA
Q3 - US-based discount retailer Family Dollar has announced that net sales for the third quarter ended 28 May were USD2.15 billion,
an increase of 7.8% from the third quarter 2010. Comparable store sales increased 4.7% in the quarter, while net income increased
6.5% to USD111.1 million. EBIT increased by 8.4% to USD184.4 million as compared to third quarter 2010.
The strongest sales for the company were in the consumables and home products categories, and during the first three quarters of
fiscal 2011, Family Dollar reported that it opened a total of 206 new stores, closed 48, and renovated 680. In the third quarter alone it
renovated 367 stores.
"We accomplished much this quarter to position us to capture greater market share and execute our longer-term vision for Family
Dollar," commented Howard Levine, Chairman and CEO. "I remain confident that our strategy of providing customers with value and
convenience, combined with the
impactful investments we are making to improve the shopping experience in our stores and our profitability, will continue to deliver
strong shareholder returns."
Family Dollar expects fourth quarter comparable store sales to increase 5-7%.
Q2 - US-based discount retailer Family Dollar has announced that net sales for the second quarter ended 26 February were USD2.26
billion, an increase of 8.3% from the second quarter of 2010. Comparable store sales increased 5.1% in the second quarter while net
income increased 9.8% to USD123.2 million. EBIT increased by 10.5% to USD200.4 million as compared to the second quarter of
2010.
The company stated that January store sales suffered from winter storms but that sales have benefited from the early spring weather in
February. The strongest sales for the company were in the consumables and seasonal categories.
"Over the last several years, we have accelerated capability-building investments and increased our efforts to improve the instore
shopping experience. These investments have provided a solid foundation for the successful launch of our strategic plan to reaccelerate revenue growth, expand operating margins and optimise our capital structure," said Howard Levine, Chairman an d CEO.
"Our performance year-to-date illustrates that we are effectively leveraging these enhanced capabilities and executing well against our
business plan and delivering superior value for shareholders."
During the first half of fiscal 2011, Family Dollar reported that it opened a total of 146 new stores, closed 43, and renovated 313. In the
second quarter alone it opened 61 new stores and renovated 140 stores.
Family Dollar expects third quarter comparable store sales to increase 5-7%.
Q1 - US discount variety retailer Family Dollar has reported net sales of USD1.99 billion for its first quarter ended 27 November, an
increase of 9.5% on the prior year period. Net income for the period increased 9.9% to USD74.3 million.
The retailer achieved comparable store sales increases of 6.9% during the quarter, the best in 12 years, driven by an increase in
customer traffic and strong sales in food and confectionery. However, growth tailed off towards the end of the quarter with comparable
store sales up just 4% during the holiday season.
Gross profit margin declined to 36% as a percentage of sales, from 36.1%, as a result of stronger sales of branded consumable
merchandise and higher transportation expenses.
During the first quarter Family Dollar opened 85 new stores and closed 18. Since the announcement of its renovation initiative in August
the group has completed 202 store renovations, including 173 during the first quarter.
For 2011 the retailer is projecting a “modest increase” in operating profit, an 8-10% increase in net sales and growth in comparable
store sales of 5-7%. Family Dollar expects to open approximately 300 new stores and will close between 80 and 100 outlets during the
year.
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Retailer Profile - Family Dollar Stores in USA
2012
FY - Fiscal year 2012 net sales increased 9.2% to USD9.33 billion and comparable store sales were up 4.7%. Family Dollar reported
gross profit of USD3.26 billion, a rise of 7.5%, during the fiscal year and, excluding the litigation charge, net income jump ed 10.5% to
USD429.4 million. During fiscal 2012, the company opened 475 new stores and relocated or expanded 854 locations. In 2013, Family
Dollar expects to open around 500 new stores and close 70-90 locations.
Howard Levine, Chairman and CEO commented: "Fiscal 2012 was a year of great progress for Family Dollar. We expanded our
merchandise assortment to increase our relevancy to our customers. We continued to improve the shopability of our stores and we
repositioned our leadership team to better support our growth."
Levine continued: "These accomplishments position us well for continued growth in fiscal 2013 and beyond. This year, as we work to
drive further benefit from the investments we made in fiscal 2012, we will focus on enhancing the shopping experience in our stores,
increasing inventory productivity, improving store-level processes, and driving greater profitability. I remain confident that these efforts,
combined with our strategy of providing customers with great value and convenience, will continue to deliver strong shareholder returns
in fiscal 2013 and beyond."
Q4 - US-based discount retailer Family Dollar has announced that net sales for the fourth quarter ended 25 August 2012 increased
10.8% to USD2.36 billion. Comparable store sales for the quarter rose 5.4%, due primarily to an increase in customer traffic and
average customer transaction values. Family Dollar reported gross profit was up 10.2% to USD799.7 million, while net income grew
10.3% to USD88.1 million – excluding a litigation charge.
Q3 - US-based discount retailer Family Dollar has announced a rise in net sales of 9.6% to USD2.36 billion for the third quarter ended
26 May 2012. Comparable store sales increased 5% in the quarter and net income jumped 12.1% to USD124.5 million compared with
third quarter 2011. The retailer reported that EBIT was up 8.2% to USD199.4 million with gross profit improving 8.4% to USD845.3
million over the previous third quarter. The strongest sales for the quarter were in the consumables and seasonal categories.
Howard Levine, Chairman and CEO, commented: "Today, we reported another quarter of strong double-digit earnings growth. I am
especially pleased that we delivered these record results even as we launched multiple initiatives late in the quarter to increase our
relevancy to the customer and drive greater store productivity. As planned, most of these initiatives began late in the quarter and had
little impact on our third quarter sales results.”
Levine continued: “We are on schedule, and I am very pleased with the progress our teams have made in such a short period of time.
As we complete most of these initiatives in the fourth quarter, we will have a fully competitive assortment and will be well-positioned to
accelerate sales productivity further."
Q2 - US discounter Family Dollar has reported an 8.6% increase in net sales to USD2.46 billion for the second quarter ended 25
February 2012. Comparable-store sales rose 4.5% and net income climbed 10.7% to USD136.4 million. During the first half of fiscal
2011, Family Dollar opened a total of 184 new stores, closed 36 and renovated, relocated or expanded 313 locations. Family Dollar
expects third quarter comparable-store sales to increase 5-7%. Howard Levine, Chairman and CEO, said: “I’m very pleased to report
that [Family Dollar] delivered our 16th consecutive quarter of double-digit earnings per share growth. Our investments to improve the
shopping experience and broaden our customer appeal are gaining momentum and continue to drive higher returns for our
shareholders. Our strategy to provide value and convenience continues to resonate in this economic environment. As we execute
against our strategic plan, our store teams are working hard to expand our merchandise assortment to better meet our customers'
needs and drive further market share gains.”
Q1 - US-based discount retailer Family Dollar has announced first quarter net sales of USD2.1 billion, an increase of 7.6% from the first
quarter in 2011. Comparable store sales for the quarter ended 26 November 2011 rose 4.1% following a 6.9% jump the previous year.
The first quarter sales growth, the company’s fifth consecutive quarter of double-digit sales growth, was led by an 11.4% rise in its
consumables category. Family Dollar reported a net income rise of 8.1% to USD80.4 million and operating profit jumped 11% to
USD134.9 million. Family Dollar expects second quarter comparable store sales to increase 5%.
Howard Levine, Chairman and CEO stated: “Today, we reported another quarter of record earnings. We opened 101 stores, nearly
20% more than in the first quarter last year, and we entered an important new market, California. We delivered a 4.1% comparable
store sales increase on top of a 6.9% increase last year, and we expanded first quarter operating margin to the highest rate since
2004.”
He continued: “The environment continues to be challenging for our customers, and our experienced team remains focused on
executing our long-term strategy. We have tremendous opportunity to expand our market share further and improve our store
productivity, and I am confident that our investments to better meet the needs of our customers will continue to position us to deliver
strong financial returns for our shareholders.”
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E-Commerce
E-Commerce Strategy
E-commerce
Family Dollar "recognizes that online shopping is offered by some retailers." However, e-commerce does not fit Family Dollar's strategy
of providing quality, name-brand merchandise at everyday low prices. Since most of its products are priced at less than USD10, the
shipping and handling costs associated with online purchases could potentially double order costs.
IT & Supply Chain
IT
General IT Strategy
Family Dollar utilizes a variety of technological systems to manage its business including inventory management tools, supply chain
systems and financial and human resource applications.
The retailer maintains by-item inventories for all stores and employs a demand forecasting system for replenishment of its distribution
centers. The company also utilizes software applications for automatic store replenishment of basic merchandise and for forecastingbased allocation of non-basic merchandise. These systems give the company tools designed to facilitate optimum merchandise instock positions in stores, reduce markdowns and improve inventory turnover.
To minimize transportation costs and maximize efficiency, Family Dollar relies on a transportation system designed to maximize trailer
loads and secure low rates from its trucking partners. In addition, the company utilizes voice-recognition software, radio-frequency
technology and high-speed sortation systems to maximize the productivity of its distribution centers.
Family Dollar also utilizes a hiring system designed to provide consistent pre-employment assessments and interviews for prospective
employees in approximately 1,200 stores. The company also has begun a multi-year effort to upgrade point-of-sale technology to
provide better customer service and to improve the communications infrastructure in stores to facilitate more efficient communication
and provide more interactive training for store employees.
In June 2008, Family Dollar selected Integrys Energy Services to provide comprehensive energy management consulting services for
its 6,000-plus retail stores nationwide. Integrys Energy Services' role is to strategically manage Family Dollar's energy portfolio,
focusing on a corporate-wide plan designed to mitigate volatility, reduce costs, and proactively manage energy sourcing.
For 2011 Family Dollar began investing in new labor scheduling and workflow management tools. The group is also using handheld
devices to manage inventory. Effective use of IT systems during 2010 allowed the group to improve inventory per store by around 8%.
Video Surveillance
In 2011, Family Dollar signed a five-year contract worth USD39 million for the use of Iverify’s third party video monitoring systems at
529 stores nationwide, with the opportunity to employ more devices in its nearly 7,000 locations.
Family Dollar believed the new system would save the company money by reducing shrinkage and replacing guard services, as each
Iverify deployment is customized to the specific store location.
Iverify President Mike May explained the system: "[Family Dollar is] using a robust application that uses Cernium analytics for locationbased risk assessment that triggers local announcements in the vicinity of high-shrink products. Further, with sophisticated time-based
analysis, it then escalates the risk profile and engages a live intervention from a protection specialist."
He continued: "They then assess and respond to a protocol based on the actual risk. This is a best case model leveraging intelligent
video coupled with a loss-prevention certified specialist that responds and reduces the customer's potential shrink losses."
Merchandise Systems
Retailer Profile - Family Dollar Stores in USA
Inventory is one of Family Dollar’s largest assets, and it is focused on driving higher returns on this asset while also managing risk. In
fiscal 2007, the company launched a multi-year process improvement initiative called Project Accelerate. Focused on category
management, price optimization, merchandise financial planning, assortment planning and space planning, this initiative is intended to
help it improve and optimize its merchandising and supply chain processes. The goal is to improve the shopping experience for
customers, the productivity of inventory and the efficiency of supply chain. The Project Accelerate initiative is helping Family Dollar
manage inventory risk and react quickly to the changing environment.
Family Dollar selected a range of TradeStone Software for its internal operations in 2011. The Merchandise Lifecycle Management
solution, Collaborative Sourcing and Supplier Community Management will unify the sourcing, design, ordering and delivery of private
label and globally-branded items. The system allows more visibility within the company as well as with suppliers.
In January 2010, Family Dollar decided to fully deploy 4R Systems’ solutions for optimization of stock levels in its stores. 4R’s inventory
solutions are delivered to retailers as online applications in a Software-as-a-Service (SaaS) model. This model is augmented by 4R
business consultants who work closely with clients to tailor the output. With the solution, Family Dollar is able to optimize key decisions
such as store and distribution center inventories for replenishment items, allocation of seasonal and fashion items, vendor ordering and
markdowns.
At the heart of Family Dollar’s transformation are merchandise planning applications from SAS. “We view our relationship with SAS as
one of our most strategic partnerships,” said Mike Laurenti, Vice President of IT Solutions and Delivery for Family Dollar. To pow er
Project Accelerate, Family Dollar invested in software from the SAS Merchandise Intelligence suite including SAS Merchandise
Financial Planning and SAS Merchandise Assortment Planning. The retailer initiated a roll out of SAS Merchandise Assortment
Planning that continued throughout 2009/10.
Enterprise Solutions
Business Intelligence and Assortment Optimization
Family Dollar is optimizing its assortment, marketing and store opening strategies with data analysis technology from Applied Predictive
Technologies (APT). Since 2007, the retailer is using APT’s Test&Learn Management System in key areas, such as planning of labor,
marketing, advertising, renovations, new store openings and capital investments. The solution supports Family Dollar to set up and
evaluate test store programs.
Since 2009, Family Dollar additionally has been utilizing APT’s Market Basket Analyzer to optimize promotions in order to increase
basket size and margins. The same analysis is applied to new product introductions. Both applications are being used on a bas is of
Software as a Service (SaaS).
Price Optimization
In 2010, Family Dollar finished implementation and rollout of Revionics Everyday Price Optimization software to all of its stores.
Previously, the retailer's pricing processes were very manual, subjective and tactically-focused. The Revionics platform allows the
retailer to make fact-based pricing decisions across a wide range of product categories and a diverse store base.
Family Dollar introduced ShopperGauge Retail Learning Lab across 20 of its stores in fall 2011. The move is in the hope of im proving
its instore shopper experience. ShopperGuage allows the retailer and its suppliers to test customers’ reactions to designs, displays, and
promotions in a real life setting. This shopper behavior insights system, created by RockTenn Merchandising Displays and its
technology partner, BVI Networks, uses video and analytics to collect and analyse shopper behavior as customers move through the
store and interact with the displays. Quantifiable metrics are then created by combining the data with the store’s transaction log to show
the number of shoppers at each location and which brands most effectively engaged the customer, ultimately resulting in a sale.
Don Hamblen, SVP, Customer Marketing explained: “For example, we may find that sales in one particular area of the store are below
our expectations. In the past, we would just throw more marketing at the problem. Now, we can use ShopperGauge to determine how
to actually solve the problem. Perhaps a design change is needed instead of more marketing, or a change in product adjacencie s. It will
also help us to develop best practices that we can bring to our suppliers.”
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Retailer Profile - Family Dollar Stores in USA
HR Solutions
In January 2012, it became known that Family Dollar would increase the deployment of Kronos’ workforce management solution t o
control labor costs, minimize compliance risks and improve productivity. The company has selected Kronos’ integrated time and
attendance and forecasting and scheduling solutions. The workforce management system has already helped Family Dollar maintai n
accuracy in payroll processing. Michael Newman, DVP of Store Operations at Family Dollar said: "Workforce management is at the
core of our long-term success. We have achieved many benefits from the Kronos solution since implementing it in 2010. Employee
retention is at our highest levels ever and customers continue to receive superior service."
Instore Solutions
POS Systems
In 2008, Family Dollar implemented SAP Transactionware General Merchandise (SAP GM), SAP Triversity's client/server point-of-sale
application which integrates with DOS, Linux, and Windows XP.
Payment Solutions
Family Dollar utilizes VeriFone's cardholder security protection solution, VeriShield Protect, along with its VeriFone MX830 customerfacing payment systems. The payment systems were deployed in 2008 as the dollar store operator continues to roll out its “Store of the
Future” technology program. Direct Source worked with VeriFone and Family Dollar to install the MX830 systems.
Supply Chain
General Supply Chain Strategy
During fiscal 2012, manufacturers or distributors shipped approximately 9% of merchandise purchases directly to stores. FD received
the balance of merchandise at one of its distribution centers. To provide consistent, cost-effective service, FD enlists the services of
several national transportation companies throughout the US as well as its own private fleet of trucks to deliver merchandise to stores
from its distribution centers. During fiscal 2012, 94% of merchandise sent from distribution centers to stores was delivered by common
or contract carriers. IT systems have been upgraded to further enhance supply chain efficiencies, with EPOS, inventory control systems
and forecasting systems all being improved in recent years.
Chilled and frozen food distribution for the company's cooler program is handled by third-party distributors.
Inbound Transportation Family Dollar utilizes a state-of-the-art web-enabled Transportation Management System (TMS). Vendors
electronically order release product based on purchase and ship windows. Utilizing TMS, bundling of shipments, or optimization, is
performed and freight tenders are sent electronically to carriers and Family Dollar's private fleet. Tendering, tracking and tracing are
done centrally at the corporate offices. Family Dollar utilizes national and regional LTL carriers and consolidators.
Outbound Transportation Family Dollar Trucking, Inc. (FDTI), a private fleet with "for-hire" authority, is an indirect subsidiary of Family
Dollar. Family Dollar Trucking primarily services Family Dollar Stores located in southeastern states with localized operations at the
corporate fleet offices. Smaller, local fleets of drivers are based at each distribution center. Family Dollar currently uses the services of
several top transportation companies throughout the United States as well as its private fleet. Dedicated fleets offer Family Dollar a
cost-effective means of providing service to its vast network of stores across the country.
Distribution Network
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Retailer Profile - Family Dollar Stores in USA
In April 2012, it became known that Family Dollar plans to open a new distribution center in St George, Utah, by summer 2013. The
retailer will invest USD80 million in the new facility, which will be located in the Fort Pierce Industrial Park. The facilit y will generate
approximately 450 full-time jobs and be the retailer’s 11th distribution center in the country. Construction of the 800,000 square foot
(73,000 square metre) depot started in summer 2012.
Family Dollar's existing distribution centers are located at:
Matthews, NC (opened 1974, area 68,773 square metres);
West Memphis, AR (1994, 78,996);
Front Royal, VA (1998, 84,294);
Duncan, OK (1999, 84,294);
Morehead, KY (2000, 84,294);
Maquoketa, Iowa (2002, 84,294);
Odessa, TX (2003, 84,294);
Marianna, FL (2005, 84,295);
Rome, NY (2006, 84,294);
Ashley, IN (2012, 75,716).
Each of the centers are fully automated and equipped with flow-through technologies to increase efficiencies.
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News & Insights
Developments
1999
(History until end of 1999)
1959 – Leon Levine opens the first Family Dollar store in Charlotte, North Carolina.
1961 - Enters South Carolina.
1962 – Begins trading in Georgia.
1965 - Opens in Virginia.
1969 - 50th store opens.
1970 - Family Dollar goes public through an issue of common stock.
1971 - 100th store opens.
1974 - Distribution Centre opens in Matthews, NC.
200th store opens
1977 - Annual sales reach USD100 million
1982 - 500th store opens.
1989 - Portfolio reaches 1,500 units.
1992 - Annual sales reach USD1 billion milestone.
1993 - 2000th store begins trading.
1994 – New Distribution Centre opens in West Memphis, AR.
1998 - Front Royal, VA, Distribution Centre opens.
1999 - Distribution Centre opens in Duncan, OK.
2000
Annual turnover tops USD3 billion. Distribution Center opens in Morehead, KY.
2002
Distribution Centre opens in Maquoketa, IA; work starts on seventh Distribution Centre in Odessa, TX.
Retailer Profile - Family Dollar Stores in USA
October - Family Dollar has announced that sales for in fiscal 2002 amounted to USD4,162.7 million, an increase of 13.6% compared to
2001. Net income was 14.5% higher at USD216.9 million. This impressive performance was attributed to a sharp increase in the
number of stores in addition to a favourable customer response to wider ranges of consumables in food, household chemicals and
paper products. This was achieved by reducing space allocated to shoes.
2003
January - Howard R. Levine replaces his father (Leon Levine) as Chairman of the Board. He is succeeded as President by R. David
Alexander, Jr.
March - Alongside its H1 2003 results, Family Dollar reported that it had opened 179 stores and closed 42, finishing the half with a total
of 4,758 outlets. Additionally, announcing a shift in strategy towards opening more stores in urban locations (a process that tends to
take more time than opening in non-urban sites), the company has reined in its store opening target for the year, reducing its projected
total from 525 net new stores to around 435 net new units.
June - Family Dollar has stated that, during the first three quarters of the fiscal year, 285 new stores opened and 62 stores closed, with
the openings including Family Dollar’s first store in Wyoming. There were 4,856 stores trading at the end of Q3.
October - During fiscal 2003, Family Dollar opened 475 stores and closed 64 stores. At the end of the fiscal year on August 30, 2003,
5,027 stores were operating in 43 states. Howard R. Levine, Chairman and Chief Executive Officer, stated that: "In fiscal 2003, Family
Dollar reported record operating results while continuing to reinvest in the business. The milestone opening of the 5,000th store was but
one of 475 new store openings. Supply chain enhancements included the opening in Odessa, Texas, of our seventh Distribution Centre
and the continued implementation of merchandise software systems to improve inventory productivity."
December - During Q1 2004, 101 new stores were opened and 26 stores were closed, leaving the retailer trading through 5,117 outlets.
2004
December - During the first quarter 98 new stores were opened and nine stores were closed. As previously announced, the company
plans to open 500 to 560 stores and close 60 to 70 stores during the fiscal year ending August 27, 2005.
October - Vanguard Managed Solutions has announced that Family Dollar has selected VanguardMS to manage the company's wide
area network infrastructure that will be used to support its growth. VanguardMS' Careguard Managed Services will be deployed to
manage a new nationwide, Multiprotocol Label Switching (MPLS) network linking all of its retail stores and distribution centr es with its
head office. Careguard will be used to monitor and manage routers, switches, and servers within each store. In addition, within the
company's stores, data centres, and distribution centres, Careguard will provide continuous monitoring of the wide area network.
September - During the fourth quarter ended August 28, 2004, 203 new stores opened and six stores closed. Family Dollar Stores has
reported that it ended its fiscal year to end-August 2004 trading through 5,466 stores, having opened 500 stores and closed 61, for a
net addition of 439 outlets.
June - During the first three quarters ended May 29, 2004, 297 stores were opened while 55 stores closed. Family Dollar has said that it
will continue its robust expansion strategy in fiscal 2005 (which commences at end-August 2004), with preliminary plans in place to
open about 500 to 560 stores and close 60 to 70 stores resulting in around 8% to 9% net new store growth and 9% to 10% net sales
area growth. Urban markets will continue to be the focus of development, but additional resources are also being allocated to small and
mid-sized towns “where new stores can often be opened more quickly and predictably.”
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Retailer Profile - Family Dollar Stores in USA
April - The Directors of Family Dollar Stores have approved a buyback of up to an additional 5 million shares of the company's common
stock as market conditions warrant, adding that 970,800 shares remain to be purchased under a 5 million share repurchase authorized
in October 2002.
March - During Q2 2004, Family Dollar opened 95 stores and closed 22 stores and now trades through 5,182 outlets.
2005
December - In the first quarter, Family Dollar reported that it installed refrigerated coolers in approximately 400 stores and improved the
coordination of merchandising, marketing and store operations in support of its Treasure Hunt initiative. During Q1, capital expenditures
were USD48.8 million compared with USD43.0 million in the first quarter of fiscal 2005. In Q1, the company opened 73 new stores and
closed 19 stores.
October - Speaking at a recent investors conference, the CFO Jim Kelley said "The urban initiative is our greatest opportunity but it also
has the greatest challenges.” Realizing that urban markets are under-penetrated by dollar stores and have the potential of being highly
profitable, Family Dollar embarked upon the Urban Initiative late last year. While urban stores possess "legitimate" barriers, Kelley says,
they're worth it. "The retailer that's able to develop the processes needed to operate successfully in that environment will have a
significant competitive advantage," he stressed. He continued: "If we're successful (in our urban initiative) – and we believe we will be, it
augments our expansion capabilities." Currently, Family Dollar has 1,300 stores in urban areas, but the chain is not looking to expand
its urban footprint much during 2006, Kelley says. "We're going to hold… and refine the process and let the tech rollout catc h up," he
explained.
October - Family Dollar has announced it has executed a share repurchase transaction for the acquisition of 10 million shares, or
approximately 6%, of the company's outstanding common stock for an initial purchase price of USD19.97 per share through Bank of
America. The transaction was financed with the proceeds of the company's issuance of USD250 million of privately placed senior notes
as announced by the company on September 28, 2005.
September - During the fourth quarter of 2005, the company opened 222 new stores and closed five stores, ending the year trading
through 5,898 units.
August - Family Dollar has announced that the company's Board of Directors has authorized it to purchase from time to time, as market
conditions warrant, an additional USD300 million of the company's Common Stock. The purchases could be made in the open market,
in private transactions, or otherwise. The company intends to finance the stock repurchase with a combination of cash from operations
and borrowings. "We continue to believe that our stock is an attractive investment and that our share repurchase programme builds
value for shareholders," said Howard Levine, Chairman and CEO.
August - Family Dollar has announced a management reshuffle, with Howard Levine, Chairman and CEO stating “After much
consideration, I have decided to realign our management team to better meet the challenges we now face.” As previously announced,
Robert George will join FD as EVP -- Chief Merchandising Officer. Levine added “To improve communication and create better
synergies to support our strategic initiatives, merchandising, supply chain and store operations will all report to me.” In addition, Dorlisa
Flur, SVP - Strategy and Business Development, will assume executive management responsibility for real estate and facility
management. David Alexander, President and Chief Operating Officer, has resigned to pursue other opportunities.
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Retailer Profile - Family Dollar Stores in USA
July - Family Dollar has announced that Robert George will be joining the company as Executive Vice President - Chief Merchandising
Officer. Howard R. Levine, Chairman and Chief Executive Officer, said, "We are very excited to have Robert join our team in the
merchandising area. His experience in sourcing and merchandising will position us to build on our merchandising and sourcing
strengths, while providing us with a new perspective on opportunities available to the company." Mr. George has been with Staples
since 1986, where he most recently held the position of Senior Vice President, General Merchandise Manager.
June - During the third quarter of 2005, Family Dollar opened 90 stores and closed nine stores. In the first three quarters of 2005, the
company opened 278 new stores and closed 63 stores.
June - Family Dollar has stated that it has accelerated its programme for the installation of coolers for the sale of perishable food in its
stores. The company currently anticipates that it will have coolers installed in approximately 1,000 stores by the end of the fiscal year.
May - Family Dollar has announced the promotions of Barry W. Sullivan to Senior Vice President, Store Operations, and of Michael
Vickers to Vice President, Store Operations. R. David Alexander, Jr., President and Chief Operating Officer, said: "Barry and Mike are
both tremendous leaders. Barry has been instrumental in the successful roll-out and execution of the company's major initiatives,
including the Urban Initiative, and Mike has achieved significant operational improvements in our urban markets in the Florida Region.
Their retail experience and success at Family Dollar position them well in their new roles." Mr. Alexander also announced that Bruce
Barkus, Executive Vice President, Store Operations has accepted a CEO position outside the company.
March - During the second quarter of 2005, Family Dollar opened 90 stores and closed 45 stores, ending the period with 5,606 outlets.
At the end of the second quarter of 2005, about 500 stores in major urban markets had implemented the urban initiative. This initiative
is designed to improve the operating performance of urban stores, including higher sales and lower shrinkage, through investments in
people, process changes and technology. In the second quarter, the company also began the planned installation in selected st ores of
coolers for the sale of perishable food. By the end of the second quarter of 2005, coolers had been installed and stocked with
perishable food in approximately 200 stores. The company plans to have coolers installed in more than 500 stores by the end of this
fiscal year.
March - According to reports, Family Dollar is to invest USD60 million to develop a regional distribution centre in upstate New York to
service the company’s growing presence in North-eastern markets. The retailer currently trades through nearly 250 outlets in New York
and the closest DC servicing the region is located in Virginia. The new RDC is scheduled to become operational in Spring 2006.
January - Family Dollar is investing USD20 million to upgrade its urban stores. The initiative is designed to provide at least 1,000 of its
outlets in 30 urban markets with a revamp by the end of the year, following reported double digit net income declines in the retailer’s
last two quarters. The four major components in the urban initiative include: organizational changes, increased in-store support from a
human resources and loss prevention standpoint, focusing more employees on specific tasks such as merchandising, and new
technology.
2006
November - Family Dollar has announced that as a result of its continuing investigation regarding stock option issues, it will be unable
to file its annual report on Form 10-K for the fiscal year ended August 26, 2006, by the extended due date of November 24, 2006. As
previously announced, the company has formed a Special Committee of the Board of Directors to investigate the company's stock
option practices. Because the work of the Special Committee is not complete, the company is unable to file its annual report on Form
10-K by the extended due date.
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Retailer Profile - Family Dollar Stores in USA
November - Family Dollar has announced that it will be unable to file its annual report for the fiscal year ended August 26, 2006, by the
due date of November 9, 2006. The company previously filed a Form 8-K with the Securities and Exchange Commission on September
25, 2006, in which the company advised that the it is a nominal defendant in a lawsuit filed in Mecklenburg County Superior Court
alleging that certain of the company's stock option grants were "backdated." FAmily Dollar's Board of Directors has formed a Special
Committee, which consists solely of independent directors who are not defendants in that action, to conduct an independent
investigation of the company's stock option practices, evaluate the Lawsuit and take such actions with respect to the Lawsuit and
related matters as the Special Committee deems appropriate. Because the work of the Special Committee is not complete, the
company is unable to file its annual report on Form 10-K by the due date.
October - Family Dollar has announced that it has named Michael Laurenti to the position of Vice President - Information Technology.
"At Family Dollar, our information technology investments are designed to enable the business to support the company's mission to
provide a compelling place to shop, work and invest," said Josh Jewett, Senior Vice President - Chief Information Officer. "With solid
experience in leading technology efforts in support of business objectives, Michael is a great addition to our team." Prior to joining
Family Dollar, Mr. Laurenti was employed by Linens 'N Things as Vice President - Business and Technology Services.
September - Family Dollar has announced that it has named Raina L. Avalon to the position of Vice President - Transportation.
"Sustaining an efficient supply chain is critically important in our efforts to deliver a more compelling place to shop for our customers,"
said Charlie Gibson, Executive Vice President - Supply Chain. "With more than 22 years of experience in transportation and logistical
operations, Raina is a talented addition to our leadership team." Prior to joining Family Dollar, Ms. Avalon was employed by Dollar
General Corporation as Director, Transportation Operations.
September - CVS, Family Dollar, and H.E. Butt are among the first companies to join a new retail advisory group that shares best
practices in inner city retailing. The Inner City Retail Advisory Group was formed by the Initiative for a Competitive Inner City (ICIC), a
non-profit Boston-based organisation founded by Harvard Business School professor Michael Porter. Commenting on the new advisory
board, Mr. Porter stated, “Today, more and more retailers of all sizes have entered that market and realize the value of continued
expansion. We created this Retail Advisory Group to share their lessons, both successes and failures, and learn how they have
developed a model that works. For growth-oriented retailers seeking new opportunities in the marketplace, America's inner cities still
remain the next retailing frontier for revenues and profits.” The new group is meeting this week to discuss the opportunities and
challenges for expansion of retail in inner cities and specific strategies for security, community interaction and workforce training. Other
confirmed participants include: Chili's, Harlem USA, Starbucks, Staples, Grid Properties, and MacFarlane Partners.
August - Family Dollar has announced that it has promoted R. James Kelly to the position of President and Chief Operating Officer. Mr.
Kelly joined the company as Vice-Chairman - Chief Financial and Chief Administrative Officer in January 1997. In his new role, Mr. Kelly
will be responsible for overseeing all business operations of the company, including store operations, merchandising, real estate,
supply chain and technology functions. The company also announced a search for a new Chief Financial Officer. Mr. Kelly will continue
to serve as Chief Financial Officer until the position is filled.
August - Family Dollar has announced that it has named Colin McGinnis to the position of Vice President-Store Operations Support.
"This year, we have focused on improving store standards and making our stores a more compelling place to shop. As a Regional Vice
President of an urban region, Colin has been instrumental in improving the performance of many of our urban initiative market s. In his
new role, Colin will continue to support our urban initiative while also providing leadership and project support for a broader array of
store operations initiatives," said Barry Sullivan, Senior Vice President - Store Operations. "Colin's proven leadership skills and
extensive store operations experience will help us continue to drive improved customer service and stronger financial performance from
all our stores."
June - As part of ongoing efforts to boost comparable store sales and customer traffic, Family Dollar plans to test an expanded food
assortment that would be linked to its fresh foods. Fresh foods are found in coolers that have been installed in about half of all Family
Dollar stores. The retailer is also now accepting food stamps for purchases at its stores.
June - During the third quarter of fiscal 2006, Family Dollar opened 82 new stores and closed 11 stores.
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Retailer Profile - Family Dollar Stores in USA
May - Speaking at the Lehman Brothers annual retail conference, Family Dollar CEO Howard Levine reported positively on the
company’s “urban initiative” program. Launched last year, the initiative aims to increase sales while reducing employee turnover and
shrinkage at its urban store locations. Mr. Levine reported that year-to-date, “approximately 80% of the urban-initiative markets are
more profitable compared to last year” and two thirds of those markets are achieving higher profit margins. The initiative currently
includes 1,400 of Family Dollar’s 6,000 outlets.
April - Family Dollar has appointed Boris Zelmanovich to the position of Vice President-Merchandising Strategy and Operations. "Our
mission is to provide customers with a compelling place to shop. In support of this mission, last year we began to invest in an enhanced
food strategy designed to provide our customers with more convenience and value," said Robert George, Executive Vice President Merchandising. "The cooler rollout is the first phase of this strategy, and Boris has been instrumental in the successful implementation
of this program in more than 2,000 stores. In his new role, Boris will continue to support our food initiative while also providing
leadership and project support for a broader array of merchandising initiatives."
April - Family Dollar has selected Asentinel’s software for telecom expense management. The retailer will use Asentinel’s software for
auditing, allocation, reporting, vendor management, contract management, EDI invoicing, and workflow routing and approval. Through
Asentinel’s web-based reporting, Family Dollar personnel will have the ability to view important reports such as actual charges, active
inventory, and performance against budget through a real-time web interface.
April - Family Dollar has announced that it has named Thomas M. Nash to the position of Senior Vice President - New Stores with
principal responsibility for market development and new store site selection and development. Mr. Nash will report to Dorlisa K. Flur,
Senior Vice President - Strategy and Business Development. "New store growth is a significant contributor to our goal of making Family
Dollar a compelling place to shop and invest," said Howard Levine, Chairman and CEO. "As we have indicated, this year we are
focused on improving our new store opening processes and increasing our new store productivity to drive better returns to our
shareholders. With 25 years in retail real estate development, Tom's demonstrated expertise uniquely positions him to support these
objectives."
March - During the second quarter of fiscal 2006, Family Dollar opened 87 new stores and closed 37 stores.
March - Family Dollar has announced that it has named Mike Kvitko to the position of Senior Vice President - Softlines with principal
responsibility for apparel merchandising. "We continue to focus on making our stores a more compelling place to shop and on
delivering better returns on investment to our shareholders," said Howard Levine, Chairman and CEO. "With more than twenty years of
softlines experience, Mike has demonstrated strong expertise in product selection, merchandise presentation, vendor management and
inventory productivity. Under Mike's leadership, we intend to better meet our customers' apparel needs while driving better returns from
one of our largest financial assets - inventory."
March - Family Dollar has announced that it has named Kathi S. Child to the position of Senior Vice President - Human Resources. "We
continue to build our management team with strong talent to support our growth opportunity," said Howard Levine, Chairman and CEO.
"With nearly twenty-five years of experience, Kathi possesses extensive knowledge and demonstrated expertise in all facets of human
resources, including compensation and benefits, talent management and succession planning, leadership development and training,
and labor relations. Under Kathi's leadership, we will continue to actively pursue our mission of creating a more compelling place to
work." Prior to joining Family Dollar, Ms. Child was employed by JC Penney, Inc., for 17 years in a variety of human resource roles,
including most recently as Senior Vice President, Director of Human Resources.
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Retailer Profile - Family Dollar Stores in USA
February - Family Dollar has announced that it intends to appeal an adverse jury verdict rendered in a case in Tuscaloosa, Alabama.
"We are confident that the federal appeals court will ultimately find in our favour," said Howard Levine, Chairman and CEO. " Family
Dollar Store Managers are critical to the success of our stores. Our store managers work hard to provide our customers with great
values in clean, friendly stores, to hire and coach employees and to drive store profitability. They deserve to be recognized and
rewarded for the important responsibilities they bear, their hard work, and their dedication to our customers. We believe we are correct
in classifying our store managers as salaried managers, and we intend to continue to fight for what we believe is right." Under the Fair
Labor Standards Act (FLSA), salaried employees are exempt from overtime pay if they meet certain criteria. Under the regulati ons in
effect prior to August 2004, these criteria included a minimum weekly pay of USD250, the primary responsibility for managing a
business unit, and the supervision of at least two full-time individuals. Two other federal courts have found that Family Dollar store
manager positions meet and exceed these criteria as has the U.S. Department of Labor. The jury in this particular case found that
Family Dollar should have classified a number of its store managers as hourly employees entitled to overtime pay rather than as
salaried managers. Based on this finding, the Court has awarded damages in the amount of approximately USD19.1 million, plus an
amount to be determined for an award of attorneys' fees to the plaintiffs' counsel.
February - Angel.com, a provider of on-demand call centre and Interactive Voice Response (IVR) solutions and a division of
MicroStrategy, has announced that Family Dollar has selected Angel.com to create and manage a new interactive information and
registration system for new recruits. The application, which allows Family Dollar employees to provide information using speech
recognition, is designed to capture and distribute this information in a more timely and accurate manner than a paper-based system.
"Feedback from the field regarding our new Angel.com application has been positive," said Michael Lariosa, HRIS Manager, of Family
Dollar. "Many of our employees do not have Internet access. Therefore, an IVR-based phone application will help us provide and collect
information more efficiently."
February - Family Dollar has announced the opening of its 6,000th store, located in Joliet, IL. "Since opening our first store in 1959,
Family Dollar has provided customers with values and convenience in easy-to-shop, neighbourhood locations," said Howard Levine,
Chairman and CEO. "The opening of our newest store in Joliet represents a significant milestone for Family Dollar and is the result of
the hard work and dedication of all our Family Dollar Associates."
2007
November - Family Dollar has announced that it has named Donald G. Smith to the position of Vice President – Marketing. Mr. Smith
will report to Robert George, Executive Vice President and Chief Merchandising Officer. “Effectively coordinating our promotional
activity with instore advertising is a critical component of our Treasure Hunt strategy and other traffic-driving initiatives,” said Robert
George. “Don’s expertise in small-box retailing and the consumer product industry will help us increase customer traffic through more
cost-effective marketing and promotions. Through his leadership, Don will play a critical role in providing Family Dollar customers with a
more compelling place to shop.”
November - Family Dollar has announced that the company's Board of Directors has authorised it to purchase from time to time, as
market conditions warrant, an additional USD150 million of the company's common stock. The purchases could be made in the open
market, in private transactions, or otherwise. The company expects to fund the stock repurchase with cash from operations. "W e
continue to believe that our stock is an attractive investment and that our share repurchase programme builds value for shareholders,"
said Howard Levine, Chairman and CEO.
November - IRI, a provider of consumer, shopper, and retail market intelligence and insights for the consumer packaged goods, retail
and healthcare industries, has announced that it has formed a new analytics relationship with Family Dollar. In addition to providing
Family Dollar with market information, IRI will leverage its analytics solutions to help Family Dollar grow its business through a variety of
advanced merchandising and category management initiatives. In addition, IRI will collaborate with Family Dollar’s vendor community,
making store-level insights available to Family Dollar’s suppliers. “IRI offers a unique blend of forward-looking, analytics-driven
capabilities that will help us ask the right questions about our business and get to the answers that matter most to drive improved
performance,” said Family Dollar EVP and Chief Merchandising Officer Robert George. “Using IRI’s consumer and market information
and powerful analytics capabilities, Family Dollar will be uniquely positioned to better manage local market differences around product
assortment, shelf management and pricing.”
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Retailer Profile - Family Dollar Stores in USA
October - Family Dollar and The NPD Group, a provider of consumer and retail information, have announced a new three-year
information sharing agreement. As one of NPD’s participating retail partners, Family Dollar will provide its sales information in return for
access to NPD’s information services for apparel, housewares and small domestic appliances. “Armed with a better understanding of
what’s happening across the marketplace we will be able to better anticipate customer wants and needs in order to continue to be a
more compelling place to shop, work and invest.” said Robert George, Family Dollar executive vice president and chief merchandising
officer.
October - Nielsen has announced it has renewed its agreement with Family Dollar, strengthening the companies' existing relationship
and establishing Nielsen as Family Dollar's preferred in-house information provider. Nielsen has provided marketing information support
to Family Dollar since 2004. Under the new multi-year contract, Nielsen will work with Family Dollar to provide a more complete
understanding of Family Dollar consumers' shopping behaviour. In addition, Nielsen will collaborate with Family Dollar's vendor
community, making instore data available to Family Dollar's suppliers. "Our relationship with Nielsen has evolved out of our need for
better analytics and business insight to better understand and ultimately, enhance, our customers' shopping experience to make us a
more compelling place to shop," said Robert George, EVP and chief merchandising officer, Family Dollar. "Nielsen's customised data
will provide us with detailed analysis of our retail categories, which, in turn, can help us work more effectively and efficiently with our
vendor partners."
October - Family Dollar has announced that it has named Scott Zucker to the position of Vice President – Merchandising Operations.
Mr. Zucker will report to Robert George, Executive Vice President and Chief Merchandising Officer. “Offering quality merchandise at
affordable prices makes Family Dollar a compelling place to shop for our customers,” said Robert George. “Scott’s experience with
pricing, category management and merchandise solutions will be an important asset as we continue to provide the exceptional array of
quality goods our customers have come to expect from Family Dollar.” In his new role, Zucker will oversee various departments
including Category Management, Pricing, Merchandise Solutions, Vendor Management and Visual Merchandising.
October - Family Dollar has announced that it has promoted Barry W. Sullivan to the position of Executive Vice President - Store
Operations. Mr. Sullivan will continue to report to R. James Kelly, President and Chief Operating Officer. "At Family Dollar, we are
committed to developing and promoting talent from within our company, and I am especially pleased to recognise Barry' s leadership.
During his tenure with Family Dollar, Barry has worked diligently to improve the shopability of our stores, stabilise our store operations
workforce and reduce inventory shrinkage," said Howard R. Levine, Chairman and CEO. "In his new role, Barry will continue to make
significant contributions to our future growth and profitability as an essential member of our senior leadership team." Mr. Sullivan began
his career with Family Dollar in 2002 as Vice President, Northeast Division. In 2004, he became Vice President, Urban East Division,
and in 2005, he was promoted to Senior Vice President, Store Operations.
October - Family Dollar and Ironworks are implementing a new point of sale management solution. Focused on increasing revenue and
bottom line performance, Family Dollar and Ironworks have worked together to revolutionise the retailer's store system technologies by
introducing a mix of centralised and decentralised systems, leveraging package and customized applications, resting on a foundation of
standard infrastructure components and connecting to the Enterprise back office systems via a new wide area network. "Ironworks has
been an excellent technology partner," said Josh Jewett, CIO of Family Dollar. "Our collaboration with Ironworks has resulted in an ontime, on-budget project implementation that introduced additional tender types and various operational efficiencies for Family Dollar
customers.
September - Family Dollar has announced that it has named Timothy R. Brokaw to the position of Vice President - Decision Support.
Mr. Brokaw will report to Ken Smith, Senior Vice President and Chief Financial Officer. "The company has invested significantly to
improve our customers' shopping experience," said Smith. "The continuous evaluation of these investments to ensure that the returns
meet our expectations is critical to our ability to be a compelling place to shop, work and invest. Tim's extensive experienc e and
expertise will be an important asset as we focus on driving better returns from key investments."
August - Family Dollar has announced that it has promoted Jeff Thomas to the position of Vice President - Replenishment. In this new
role, Mr. Thomas will have responsibility for the company's replenishment functions. He will report to Bryan Causey, Senior Vice
President - Planning, Allocation and Replenishment. "Serving our customers better while increasing inventory productivity is critical to
fulfilling our mission of making Family Dollar a more compelling place to shop, work and invest," said Causey. "With more than 20 years
of retailing and supply chain experience, Jeff will help us continue to drive improved customer service and stronger inventory returns by
working closely with our vendor partners to ensure that we have the right amount of inventory in the right stores at the right time."
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Retailer Profile - Family Dollar Stores in USA
August - Family Dollar has revised its full-year outlook, noting that the company now expects that comparable store sales for the fourth
quarter and the August period will increase 1% to 2%. Quarter-to-date, sales of higher margin categories, including apparel, have been
softer than planned. Consequently, the company now believes that higher markdowns and the effect of a less favourable merchandise
mix will pressure gross margin more than previously expected. In addition, the company is installing a new lease management system
that will create a searchable, electronic repository for the chain's extensive library of store leases. The implementation of this new
system will provide the company with better visibility of its real estate assets and obligations. As a result, the company expects to record
adjustments in the fourth quarter related to store lease accounts, including property tax, common area maintenance and insurance
accruals. The company currently estimates that the effect of these non-cash, non-recurring adjustments could reduce fourth quarter
earnings by approximately USD0.03 per diluted share. Given these factors, Family Dollar now expects that earnings per diluted share in
the fourth quarter will be between USD0.19 and USD0.22 compared with USD0.21 per diluted share for the fourth quarter last year.
July - Family Dollar has announced that it has named James H. Hays to the position of Vice President - Internal Audit. Mr. Hays will
report to the Audit Committee of the company's Board of Directors and Ken Smith, Senior Vice President and Chief Financial Officer.
"The fulfillment of our mission to provide a compelling place to shop, work and invest, relies on our ability to maintain str ong internal
controls and efficient business processes," said Smith. "Jim's breadth of both retail and internal audit experience positions him well to
focus our internal audit work on continuously improving our processes and ensuring we maintain an effective control environment."
June - Family Dollar has announced that it has promoted Kiley F. Rawlins to the position of Vice President - Investor Relations and
Communications. In this role, Ms. Rawlins will continue to have responsibility for investor relations, media relations and corporate
communications. Ms. Rawlins will report to Ken Smith, Senior Vice President and CFO. "Family Dollar has been a public company for
more than thirty-seven years, and maintaining transparent, accessible and consistent communications is key to meeting our goals of
providing our associates with a compelling place to work and our shareholders with a compelling place to invest," said Howard R.
Levine, Chairman and CEO. "Kiley's promotion reflects our appreciation of her continuing success in meeting these goals. Her
knowledge of Family Dollar and her extensive experience in our channel will enable us to continue to effectively communicate the
company's strategy and business goals to investors, associates and the general public."
June - Family Dollar has announced that it has reached an agreement for settlement of all stockholder derivative actions alleging that
certain stock option grants had been "backdated." The settlement is subject to court approval. The settlement terms generally provide
for certain corporate governance reforms, consisting principally of: improved processes for the approval of stock option grants; adoption
of categorical standards for director independence; adoption of a majority vote policy for uncontested elections of directors; the election
of two additional independent directors; provisions for recovery of cash bonus payments made to executive officers in the event of any
future financial restatements resulting from intentional misconduct; and provisions for minimum stock ownership levels by company
officers.
June - Family Dollar has announced that the company's Board of Directors has authorised it to purchase from time to time, as market
conditions warrant, an additional five million shares of the company's common stock. The purchases could be made in the open market,
in private transactions, or otherwise. The company intends to fund the stock repurchase with cash from operations. This autho risation
continues the company's share repurchase programme that began in October 2002. During the current fiscal year ending September 1,
2007, the Company has purchased in the open market approximately 5.0 million shares of the company's common stock at a cost of
about USD165.0 million, leaving approximately 1.1 million shares authorised to be purchased under previous authorisations.
June - Family Dollar has announced that it has promoted Marianne Fiorucci to the position of Vice President - Planning and Allocations.
In this new role, Ms. Fiorucci will have responsibility for the company's merchandise planning and allocation functions. She will report to
Bryan P. Causey, Senior Vice President - Planning, Allocation and Replenishment. "Ensuring that we have the right product in the right
stores at the right time is critical to providing our customers with a compelling place to shop. Our multi-year initiative called "Project
Accelerate" is designed to help us serve our customers better while also enhancing our inventory productivity and profitabili ty," said
Bryan Causey, Senior Vice President - Planning, Allocation and Replenishment. "Marianne's proven leadership skills and extensive
retailing experience will help us continue to drive improved customer service and stronger inventory returns in all our stores."
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Retailer Profile - Family Dollar Stores in USA
April - Family Dollar has announced that it has promoted Bryan Causey to the position of Senior Vice President - Planning, Allocation
and Replenishment. Most recently, Mr. Causey served as Vice President - Planning and Merchandise Control. In this new role, Mr.
Causey will have responsibility for the company's merchandise planning, allocations and replenishment functions. He will report to
Charles Gibson, Jr., Executive Vice President - Supply Chain. "This year we initiated a multi-year initiative that we call "Project
Accelerate" which is designed to optimize our merchandising and supply chain operations. Our goal is to better serve our customers
while enhancing our profitability," said Howard R. Levine, Chairman and CEO. "Key to the success of this project is the partnership
between our merchandising, supply chain and store operations organisations, and Bryan has worked tirelessly to create more
disciplined planning processes and to develop strong cross-functional teams focused on driving improved inventory productivity. In his
new role, he will continue to provide key leadership as we work to become a more compelling place to shop, work and invest."
April - Family Dollar has announced the promotion of Kenneth Smith to the position of senior vice president and chief financial officer.
Smith most recently served as vice president of finance. Commenting on the appointment, chief executive Howard Levine said, "Since
joining Family Dollar more than seventeen years ago, Ken has successfully led teams in a number of areas, including accounting,
finance, information technology, loss prevention and store operations. This broad base of experience has strengthened his knowledge
of Family Dollar, and his promotion to chief financial officer reflects his financial expertise and the value of his contributions to our
company. In his new position, Ken will continue to be a strategic partner with our leadership team as we maintain our focus o n better
serving our customers and on delivering stronger financial returns."
April - Family Dollar has announced that it has named Wook Lee to the position of Senior Vice President - Global Sourcing. In this new
position, Mr. Lee will have responsibility for the development of the company's comprehensive sourcing strategy. Mr. Lee will report to
Robert George, Executive Vice President - Merchandising. "Today, approximately 40% of our merchandise is manufactured globally.
Enhancing our global sourcing capabilities will enable us to improve merchandise quality and lower our production and supply chain
costs," said Howard R. Levine, Chairman and CEO. "With significant experience in global sourcing, production and quality assurance
efforts, Wook is a talented addition to our leadership team."
March - Family Dollar has stated that, strengthening its selection of family apparel, it is to introduce the Hanes clothing brand in its
stores. Customers will now be able to buy a selection of Hanes socks and underwear for men, women and children in all 6,300 Family
Dollar stores. "The introduction of Hanes to our everyday apparel assortment reflects our ongoing commitment to providing customers
with trusted, national brands at affordable prices," said Mike Kvitko, Senior Vice President - Softlines. "Our customers rely on us to
provide them with quality and value, and increasing our selection of nationally recognized brands at great low prices is part of our
ongoing efforts to provide customers with a more compelling place to shop." Hanesbrands, which was spun off from Sara Lee
Corporation in 2006, generates around 28% of its sales through Wal-Mart, 15% through Target and 6% through Kohl’s.
2008
October - Applied Predictive Technologies (APT) has been selected by Family Dollar to implement a Test & Learn Management
System. Combining leading-edge technology and smart design, the Test & Learn platform provides a set of solutions that help large
retail organizations institutionalize a rigorous retail testing process. APT 6 automates complex functions such as data collection,
provides sophisticated tools required to design and interpret tests correctly, generates consistent and clear outputs for each test, and
supports a repeatable process for business users and senior decision-makers across the organisation. At Family Dollar, the APT Suite
will be used to optimise a number of strategic initiatives across functional areas ranging from operations to capital investment to
marketing, merchandising, labour and real estate. Family Dollar chose APT and Test & Learn in large part due to the breadth of the
issues that can be optimised via the Test & Learn Solution. "Family Dollar considers Test & Learn to be a key strategic capability for
evaluating and optimising business initiatives. We have applied APT tools to important initiatives ranging from operations to marketing
to capital investment, identifying specific improvement opportunities with substantial value," said Dorlisa Flur, Executive Vice President,
Strategy and Marketing, at Family Dollar.
October - Family Dollar Stores has announced that Marilyn Morse has been promoted to the position of Vice President – Facilities
Management and Mtu Pugh to the position of Vice President – Business Development. Morse will report to Keith Gehl, Senior Vice
President – Real Estate and Facilities. Pugh will report to Dorlisa Flur, Executive Vice President – Strategy and Marketing. “At Family
Dollar we’re committed to developing talented Associates and rewarding performance,” said Howard Levine, Chairman and CEO. “The
promotions of Marilyn and Mtu reflect the significant contributions they have made to Family Dollar as we pursue our mission of being a
compelling place to shop, work and invest.”
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Retailer Profile - Family Dollar Stores in USA
October – Family Dollar has promoted Dorlisa K Flur to the position of Executive Vice President – Strategy and Marketing. Flur, who
holds Masters of Business Administration from Fuqua School of Business at Duke University, joined the company in 2004 as Senior
Vice President – Strategy and Business Development. “Understanding our customer is critical to our mission of providing customers
with a compelling place to shop. We have invested significantly to know our customers better, and with Dorlisa’s leadership, we have
used this knowledge to develop our strategic agenda. She has been instrumental in the development of several of our key initi atives,
including the launch of our cooler programme, Concept Renewal and our broader re-branding effort. […] In addition to her current
strategy and business development responsibilities, Dorlisa will assume executive responsibility for Marketing. Our goal is t o improve
the financial returns of our marketing strategy by strengthening the linkage between our customer communications and our customer
research efforts. Dorlisa will also utilise customer insights to lead our cross-functional efforts to enhance Family Dollar’s private label
strategy,” said Chairman and Chief Executive Howard Levine.
August - Family Dollar has announced that it has named Lonnie W. McCaffety to the position of Vice President – Store Operations. Mr.
McCaffety will report to Barry Sullivan, Executive Vice President - Store Operations. “We are committed to providing talented Family
Dollar Associates with clear career paths,” said Barry Sullivan. “Lonnie’s superior leadership and significant contributions to our
organisation make him a key member of our operations team. In his new role, Lonnie will help us continue to be a compelling place to
shop for our customers.”
June – Estee Lauder has filed a federal lawsuit against CVS Caremark Corp, Family Dollar and perfume maker Preferred Fragrance.
CVS Caremark Corp and Family Dollar are accused of selling imitations of Estee Lauder products and using similar fragrance names.
The cosmetic group is claiming USD1 million in damages for each type of imitated product.
June – Family Dollar has announced it has promoted Jacob J Modla to the position of vice president, deputy general counsel. "In his
new role, Jake will continue to utilise his experience and expertise to enhance our operational efforts to avoid and manage l itigation
risks,” said senior vice president, Janet Kelly. Modla joined Family Dollar in 2004 as assistant general counsel, litigation.
June - Family Dollar has selected Integrys Energy Services to provide comprehensive energy management consulting services for its
6,000-plus retail stores nationwide. With energy being one of the most unpredictable and volatile costs facing businesses today,
Integrys Energy Services' role will be to strategically manage Family Dollar's energy portfolio, focusing on a corporate-wide plan
designed to mitigate volatility, reduce costs, and proactively manage energy sourcing. In addition, invoice management and payment,
along with customised utility data management services from Integrys Energy Services, will help Family Dollar upgrade their e xisting
energy competency.
April - Family Dollar has signed an agreement with VeriFone to deploy its cardholder security protection solution, VeriShield Protect,
along with an order for VeriFone MX830 customer-facing payment systems. The new payment systems will be deployed as the dollar
store operator rolls out its “Store of the Future” technology programme. “Credit acceptance expands payment options for our customers
and VeriFone’s MX830 fits well with our focus on value and convenience,” said Josh Jewett, CIO of Family Dollar. “Just as importantly,
VeriShield Protect ensures that our stores do not store or transmit any consumer card account data that could be compromised.” Direct
Source will work with VeriFone and Family Dollar to install the MX830 systems.
February - Family Dollar has announced that it has named Bryan Venberg to the position of Senior Vice President - Human Resources.
Mr. Venberg will report to Howard R. Levine, Chairman & CEO. “Recruiting, developing and retaining talented associates is at the core
of being a compelling place to shop, work and invest,” said Howard Levine. “With more than thirteen years of retail experience, Bryan
brings with him a proven track record of Human Resource and Store Operations experience. Through his leadership, we will continue to
develop our associate talent to support our continued growth.”
February - Family Dollar has unveiled its redesigned logo and strap-line, using the new design on its marketing literature and on newly
opened or renovated stores. The new logo includes a stylised icon representing a family and the retailer’s new marketing strap-line
reads ‘my family. my family dollar.’
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Retailer Profile - Family Dollar Stores in USA
February - Speaking at an investment conference, the chief executive officer of Family Dollar in the USA, Howard Levine, has said that
he expects the first half of the retailer's fiscal year to be "challenging," but he is forecasting stronger performance for the second half of
the year as the retailer controls expenses. Levine said its typical shopper is a female, in her mid-40s, with a family and an income of
less than USD30,000 a year. He said Family Dollar estimated that last year, their customers spent roughly 70% of their income on
housing, energy and food. "Our customers are severely strapped for cash, especially at the end of the month," he said, adding that
shoppers have been consolidating their store trips, spending more time at home and putting fewer dollars toward discretionary items.
To navigate the tough environment, Family Dollar is bolstering its consumable product categories, adding more food items to its
selection, and looking closely at its cost structure, he said. "We believe there are additional opportunities to lower our co st of doing
business."
2009
November - Middle-income shoppers have accounted for approximately 40% of the sales growth of US discount retailer Family Dollar
Stores over the past four years, Supermarket News reported. Family Dollar Stores is working to broaden its appeal to middle-income
customers to keep sales growing once the economy recovers, R. James Kelly, President and COO reportedly said at the annual Global
Consumer & Retail conference. To broaden its appeal, Family Dollar is focusing more on better quality and operating standards and on
offering more branded merchandise, along with putting more emphasis on consumables by realigning category space and creating
better adjacencies.
November - Family Dollar Stores announced that the Company’s Board of Directors has authorized the Company to purchase from time
to time, as market conditions warrant, an additional USD400 million of the Company’s common stock. The share repurchase program
does not have an expiration date, and any purchases may be made in the open market, in private transactions or transactions
structured through investment banking institutions. The Company expects to fund the stock repurchase program with cash from
operations. “We have a strong balance sheet, and our operating model generates strong cash flows,” said Howard Levine, Chairm an
and CEO. “We continue to believe that our stock is an attractive investment and that our share repurchase program builds value for
shareholders.” At the end of fiscal 2009, the Company had authorization to purchase up to an additional USD62.0 million of its common
stock. This new authorization is in addition to the Company’s current share repurchase authorization.
October - Family Dollar will use Market Basket Analyzer from Applied Predictive Technologies (APT) to analyse transaction log data.
The chain has used APT’s Test & Learn platform software to optimise a number of initiatives, from labour operations and capital
investment to marketing and merchandising.
October - The Alabama Supreme Court has decided not to hear a labour dispute case against Family Dollar Stores, prompting a
USD35 million ruling made by a panel of Tuscaloosa judges in December to stand. The federal judges sided with a group of Family
Dollar employees, saying the chain denied them overtime pay by classifying them as store managers. That ruling upheld a 2006 jury
verdict that found the Matthews, N.C.-based company in violation of the Fair Labour Standards Act and awarded back pay to 1,424
employees, who routinely worked 60 to 70 hours a week. Their duties often included mopping floors, unloading trucks, stocking shelves
and running cash registers. The jury “reasonably determined that Family Dollar failed to meet its burden of proving that Plaintiff store
managers' primary duty was management.”
September - Family Dollar Stores has announced that it has named Kecia Lamm to the position of Vice President – Store Operations
and Holly Shaskey-Platek to the position of Vice President – Change Management and Leadership Development. Ms. Lamm will report
to Barry Sullivan, Executive Vice President - Store Operations. Ms. Shaskey-Platek will report to Bryan Venberg, Senior Vice President
- Human Resources. Howard Levine, Chairman and CEO, said: “With more than sixteen years of retailing experience, Kecia brings with
her a proven track record of store operations experience. Through her leadership, Kecia will play a critical role as we continue our
efforts to improve the in-store shopping experience.” Levine continued: “Building strong employee teams is critical to our future
success. With more than twenty years of retailing experience, Holly possesses extensive expertise in leadership and team
development. Under Holly’s leadership, we will continue to develop our team member talent and actively pursue our mission of creating
a more compelling place to work.”
August - Family Dollar Stores has named Dorlisa K. Flur to the position of Executive Vice President, Chief Merchandising Officer,
replacing Robert George, who has left the company to pursue other opportunities. Flur joined Family Dollar in 2004 as Senior Vice
President, Strategy and Business Development. In October 2008, Flur was promoted to Executive Vice President, Strategy and
Marketing.
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Retailer Profile - Family Dollar Stores in USA
May - Family Dollar has added 200 new grocery items to its range. The initiative, being widely marketed instore, is also being promoted
on circulars and on the retailer’s website. The new items include products from brands such as Heinz, Cheerios, Folgers, Vlasic,
Campbell’s, Kraft, Welch’s, General Mills and Banquet.
May - Family Dollar has announced that it has named Kevin Boyanowski to the position of Senior Vice President – Global Sourcing.
Boyanowski will report to Robert George, Executive Vice President and Chief Merchandising Officer. “Providing customers with quality
products at good prices is a key component of our value proposition. In addition to offering an assortment of nationally recognised
brands, we also develop and source goods from a variety of countries around the world. In support of these efforts, we have invested
significantly to improve our global procurement capabilities to include enhanced quality control processes and stronger global
relationships,” said George. “Continuous improvement is critical to our desire to provide more value for our customers and
shareholders, and Kevin’s vast knowledge and experience positions him well to lead our efforts to drive further improvement in our
global procurement capabilities.” Prior to joining Family Dollar, Boyanowski served as a Partner and Solution Lead for IBM’s Global
Business Services.
April - TIO Networks, a leading multi-channel expedited bill payment processor, has announced an agreement to offer expedited bill
payment and financial services terminals in 10 Family Dollar locations in El Paso, TX. The kiosks enable cash-preferred customers to
make expedited bill payments on their wireless, utility and other accounts. As part of this limited test, customers will also be able to
purchase prepaid products and services, transfer money to family and friends around the world, and reload pre-paid debit cards. “We
are privileged to partner with Family Dollar, to offer expedited bill payment and non-banked financial services,” said Hamed Shahbazi,
Chairman and CEO of TIO Networks. “Cash-strapped consumers can utilise this service to confidently make last minute payments and
avoid late fees.”
April - Family Dollar has announced that it has named James C. Snyder, Jr., to the position of Senior Vice President – General Counsel
and Corporate Secretary. “With substantial expertise in corporate governance, litigation and risk management, Jim is an excellent
addition to our team,” said Howard Levine, Chairman and CEO. “As a member of our senior leadership team, Jim will bring an
experienced, balanced legal perspective to our decision making as we continue to work to become a more compelling place to shop,
work and invest.” Prior to joining Family Dollar, Snyder served as Vice President and Associate General Counsel for Legal and Risk
Management with The Home Depot.
January - Family Dollar is in the midst of Project Accelerate, a three-year transformation that ultimately will lead to a better shopping
experience for customers, improved productivity of its inventory, and enhanced efficiency in its supply chain. At the heart of Family
Dollar’s transformation are merchandise planning applications from SAS, the leader in business analytics. “We view our relationship
with SAS as one of our most strategic partnerships,” said Mike Laurenti, Vice President of IT Solutions and Delivery for Family Dollar.
To power Project Accelerate, Family Dollar invested in software from the SAS Merchandise Intelligence suite including SAS
Merchandise Financial Planning and SAS Merchandise Assortment Planning. The retailer has initiated a roll out of SAS Merchandise
Assortment Planning that will continue throughout 2009.
2010
December - Family Dollar is making a final push for the “eight days to Christmas” with hundreds of USD5 toys and gifts and 10%
reductions on purchases over USD100. The retailer has also extended its store opening hours to stay open until 10pm in order to drive
sales in the crucial holiday season. Don Hamblen, Senior Vice President of Customer Marketing said: “Being a compelling place to
shop means being there when our customers need us.”
November - Family Dollar has announced the appointment of two new Vice Presidents within its management team. Tim Chew has
been named VP for IT Applications Delivery, having served as Divisional Vice President for Applications Development. George Zeeff
has been appointed to the position of Vice President for Supply Chain Improvement, a step up from his previous position as Divisional
Vice President. Howard Levine, Chairman and CEO commented: “Tim and George have both made significant contributions to our
business. These promotions reflect their continued commitment to our mission of being a compelling place to shop, work and invest.”
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Retailer Profile - Family Dollar Stores in USA
October - Family Dollar is to ramp up new store openings during 2011 and expects to open 300 new stores, a 50% increase on the
previous year. The retailer says it will also renovate 600-800 outlets at an investment of USD100,000 to USD130,000 per store and will
strengthen its brand identity with exterior redesigns. Family Dollar Chairman and CEO Howard Levine said: “We are launching a
comprehensive renovation programme that will result in more customer-focused assortments and layouts, rejuvenated physical stores
and more customer-centric teams.” He added that the renovations began in a number of stores in August and that 200 store
renovations are expected to be completed in time for the Christmas period. The ambitious renovation plans are expected to boost sales
by making more space available for food products, which helped buoy results during 2010. Family Dollar also benefited from it s storewithin-a-store presentation concept and investment in IT systems.
September - Supermarket News reports that Family Dollar is so committed to its new Family Gourmet private label food line that it plans
to add an additional 70 items soon, according to Mary Rachide, the discount chain’s DVP of private brands. The new items will start
rolling out in January, Rachide said Monday in a presentation at IIR’s Private Brand Movement Conference. Rolling out now, the new
Family Gourmet line includes about 70 food items. All products are tested against a national-brand equivalent, and backed with a
guarantee that the full purchase price will be refunded if the buyer is not satisfied with the quality. “Lower your price, not your
standards,” is the brand’s tagline.
September - Revionics, a provider of retail life cycle price optimisation software, has announced Family Dollar’s successful
implementation and rollout of Revionics Everyday Price Optimisation solution to all 6,700 stores. Family Dollar is using Revionics’
Everyday Price Optimisation Solution to help them achieve industry-leading financial performance while still delivering a compelling
value and convenience proposition to their customers. “Before Revionics, our pricing processes were very manual, subjective and
tactically-focused,” stated Scott Zucker, VP of Information Technology for Family Dollar. “The Revionics platform allows us to make factbased pricing decisions across a wide range of product categories and a diverse store base. We can model various pricing strategies,
understand the impact on sales and profit, and act quickly to capture the benefits.”
September - Family Dollar has announced that it has named Jacob J. Modla to the position of Vice President – Human Resources.
Modla will report to Bryan Venberg, Senior Vice President - Human Resources. “At Family Dollar, we are committed to developing and
promoting talent from within our company,” said Venberg. “In his new role, Jake’s legal expertise and experience will help ensure our
compliance with rapidly changing laws and regulations and support our continued efforts to a more compelling place to work for our
Team Members.” Modla began his career with Family Dollar in 2004 as Assistant General Counsel – Litigation and most recently
served as Vice President – Deputy General Council.
July - Activist investor Nelson Peltz's Trian Fund Management has reported a 6.58% stake in discounter Family Dollar Stores. Trian
said Family Dollar's shares are "undervalued in the market place and represent an attractive investment opportunity." It said Trian
Group has met with Family Dollar's management including its Chief Executive Howard Levine. It said the discounter has opportunities
to improve its operating performance such as increasing sales per square foot to peer levels and optimise the number of new s tore
openings. It added that the company could use its free cash flow to increase the size of its stock repurchase programme. The stake
makes Trian the second-largest shareholder of the discounter behind Maverick Capital. Responding to the news, Family Dollar stated:
“Family Dollar’s Board of Directors and management team are dedicated to building value for all shareholders. The Company is
interested in the views and opinions of its shareholders and recently met with representatives of Trian Fund Management. Over the last
several years, Family Dollar has invested to improve processes and capabilities throughout the organisation. As a result, the company
has achieved nine consecutive quarters of double-digit earnings per share growth, significantly expanded operating margins and
improved inventory productivity.”
July - Western Union, a global payment services company, and Family Dollar have announced an agreement to offer the Western
Union goCASH service, a new instore money transfer service from Western Union, across 6,500 Family Dollar store locations. The
service provides consumers the convenience of being able to send a domestic or global money transfer while shopping at a
participating Family Dollar location. Once purchased at a cash register, the sender will complete the transaction over the phone through
a Western Union customer service representative and provide the money transfer information to the receiver. “Providing value and
convenience have been the cornerstone of our business for more than fifty years,” said Robert Giles, Family Dollar Divisional Vice
President. “Our relationship with Western Union reinforces that position and gives our customers another compelling reason to shop at
Family Dollar.”
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Retailer Profile - Family Dollar Stores in USA
July - Family Dollar Stores has selected Bernstein-Rein Advertising of Kansas City, MO, as its first agency of record. Billings were not
disclosed. Bernstein-Rein, which is a former creative agency for Walmart, will handle tasks for Family Dollar like creative, media
planning and buying, and digital work.
June - Family Dollar has announced the appointment of Scott Zucker to the position of Vice President - IT Solutions Delivery. Zucker
will report to Josh Jewett, Senior Vice President - Information Technology, Chief Information Officer. "Scott brings extensive experience
in leading interdepartmental teams through his work with merchandising, supply chain and store operations," said Jewett. "His unique
blend of business and technology experience will continue to be an asset in his new role."
June - Family Dollar has launched Kidgets, a USD10-and-under private label clothing and accessories line for newborns and toddlers.
Kidgets is an extensive collection of value-priced clothing and accessories featuring everything from three-piece outfit sets and shoes to
diapers and baby blankets. Kidgets, available at Family Dollar store locations nationwide, offers the latest fashion trends at affordable
prices, so kids can stay stylish throughout the year, even as they outgrow last month's sizes. "Family Dollar is excited to give families
more reasons to shop at our stores," said Howard Levine, Chairman and CEO of Family Dollar. "Our exclusive Kidgets line provi des
style, comfort and variety for moms to dress their children at price points that meet any budget."
January - Family Dollar has decided to fully deploy 4R Systems’ solutions for optimisation of stock levels in its stores. 4R’s inventory
solutions are delivered to retailers as online applications in a Software-as-a-Service (SaaS) model. This model is augmented by 4R
business consultants who work closely with clients to tailor the output. With the solution, Family Dollar will optimisie key decisions such
as store and distribution centre inventories for replenishment items, allocation of seasonal and fashion items, vendor ordering and
markdown. “Being a compelling place to shop means having the right mix of product in the stores at the right time for our cus tomers,”
said Bryan Causey, Senior Vice President – Planning, Allocation and Replenishment at Family Dollar Stores. "4R’s profit optimised
store inventory service has improved our ability to maintain inventory levels that satisfy customer needs better and are more profitable
for Family Dollar.”
January - Family Dollar has announced that it has named Don Hamblen to the position of Senior Vice President – Customer Marketing.
Hamblen will report to Dorlisa Flur, Executive Vice President and Chief Merchandising Officer. “Our focus on the customer has never
been stronger or more important,” said Flur. “We’ve invested significantly to know our customer and understand how to better serve her.
Don brings extensive experience in communicating to a broad and diverse retail customer base. Through his leadership we’ll enhance
communications to our customers and reinforce our position of value and convenience through our portfolio of private label brands and
an improved in-store shopping experience.” Hamblen began his marketing career as a brand manager with Procter & Gamble in
Cincinnati, Ohio. Prior to joining Family Dollar, Hamblen most recently served as Chief Marketing Officer for Sears and previous to that,
he headed the marketing department at Payless Shoesource.
2011
December - US discount retailer Family Dollar has announced the appointment of Paul White as Executive Vice President and Chief
Merchandising Officer. White will report to Chief Operating Officer Michael Bloom. He previously held the role of Senior Vice President
of Apparel, Home and Seasonal for the company, to which he was appointed in 2011. Bloom said: "Through Paul's leadership and
strategic vision, Family Dollar has created a compelling mix of discretionary merchandise which has led to a more fun place t o shop for
our customers. Paul's promotion will help us continue to broaden our appeal and deliver greater value to our customers."
November - US discounter Family Dollar Stores has opened four new stores in California, cementing its status as one of the fastest
growing retailers in the country. The outlets are located in Ontario, Rialto, Riverside and Fontana. To mark the occasion, there will be
grand opening ceremonies at each of the four sites beginning 17 November will activities for families and a canned food drive in aid of
the Second Harvest Food Bank. Family Dollar plans to open 450-500 stores in fiscal 2012.
Howard Levine, Chairman and CEO of Family Dollar, said: “We're proud and excited to bring our value and convenience to more
customers with our newest stores in California. These stores offer an opportunity to introduce our new neighbours to a more compelling
place to shop for everything they need for their families.”
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Retailer Profile - Family Dollar Stores in USA
October - Family Dollar is to expand its selection of consumables in an effort to increase basket size. “We plan to further expand our
consumables assortment and refocus our discretionary business, and we intend to increase our penetration of private brands,” said
Howard R. Levine, Chairman and Chief Executive Officer. Consumables increased to 69.1% of sales during the fourth quarter,
compared with 67.3% a year earlier. Private brand sales rose 22% during the year reaching 25% of total sales. Private brand sales in
the consumables category rose 26% to approximately 16% of sales.
September - US-based Family Dollar has named Trian Partners co-Founder Edward P Garden to its executive board as part of an
arrangement to limit the investment company’s share of the discount retailer. The agreement means that Trian will not be able to
increase its stake in Family Dollar above 9.9% from its current 8.29%. It comes seven months after Trian’s offer to acquire t he retailer
for USD7.75 billion was refused as it was thought not to be in Family Dollar’s best interests. Garden’s appointment makes him the 11th
member of the board.
September -US-based discount retailer Family Dollar has announced the appointment of Michael Bloom to the role of President and
Chief Operating Officer. This follows the announced retirement of R James Kelly from the position. Over the past 15 years, Kelly held
the position of Vice Chairman and CFO of Family Dollar before assuming the role of President and COO. Bloom previously worked for
CVS Caremark as Executive Vice President of Merchandising, Supply Chain, Marketing and Advertising, and will report to Chairm an
and CEO, Howard Levine. The company also announced the promotion of Dorlisa Flur to Vice Chair, Strategy and Chief Administrative
Officer, also reporting to Levine. Flur most recently held the position of Chief Merchandising Officer.
September - US-based discount retailer Family Dollar has introduced ShopperGauge Retail Learning Lab across 20 of its stores. The
move is in the hope of improving its instore shopper experience, Progressive Grocer reports. ShopperGuage allows the retailer and its
suppliers to test customers’ reactions to designs, displays, and promotions in a real life setting. This shopper behaviour insights system,
created by RockTenn Merchandising Displays and its technology partner, BVI Networks, uses video and analytics to collect and
analyse shopper behaviour as customers move through the store and interact with the displays. Quantifiable metrics are then created
by combining the data with the store’s transaction log to show the number of shoppers at each location and which brands most
effectively engaged the customer, ultimately resulting in a sale.
Don Hamblen, SVP, Customer Marketing explained: “For example, we may find that sales in one particular area of the store are below
our expectations. In the past, we would just throw more marketing at the problem. Now, we can use ShopperGauge to determine h ow
to actually solve the problem. Perhaps a design change is needed instead of more marketing, or a change in product adjacencies. It will
also help us to develop best practices that we can bring to our suppliers.”
September - US-based discount retailer Family Dollar has announced the appointment of Trey Johnson to the newly created position of
Senior Vice President, Food. He will report to EVP and CMO Dorlisa Flur. Johnson previously held the position of VP and Gener al
Merchandise Manager of Food and Consumables for Sears Holdings.
September - US-based discount retailer Family Dollar has selected a range of TradeStone Software for its internal operations. The
Merchandise Lifecycle Management solution, Collaborative Sourcing and Supplier Community Management will unify the sourcing,
design, ordering and delivery of private label and globally-branded items. The system allows more visibility within the company as well
as with suppliers.
Kevin Boyanowski, Senior Vice President, Global Sourcing, Family Dollar Stores said: "We were impressed with TradeStone's retail
knowledge in the sales cycle and
that was even more apparent during implementation. Everything that had been promised has been delivered and we look forward t o
what the next phase will bring."
August - US-based discount retailer Family Dollar has announced that it has teamed up with T-Mobile to offer a prepaid mobile phone,
the LG GS170, for USD30 in almost 6,000 of its stores. Plans available include a 4G plan for USD50 per month with no annual contract.
Bob Giles, Divisional Vice President for Family Dollar commented: "We have had a great relationship with T-Mobile since 2003 and
believe that this partnership has been a key factor in Family Dollar becoming one of the nation's largest national retailers of mobile
airtime. T-Mobile's track record for providing quality service and customer support fits well with our culture and commitment to the
customer, and we are very excited to take our partnership to the next level and begin selling the company's devices as well."
Brightstar Corp. will be handling all invoicing, shipping and supply functions, along with other operational and fulfilment needs.
June - US-based discount retailer Family Dollar has announced that it has signed a five-year contract of USD39 million for the use of
Iverify’s third-party video monitoring systems at 529 stores nationwide, with the opportunity to employ more devices in its nearly 7,000
locations. Family Dollar believes this new system will save the company money by reducing shrinkage and replacing guard services, as
each Iverify deployment is customised to the specific store location.
Mark Mellor, Family Dollar Director of Loss Prevention, Corporate Campus and Supply Chain Organization, stated that the company
previously “had a standard DVR format in place before, but nothing interactive, and when we were looking to expand our loss
prevention programme, it was a natural fit to go with [Iverify]. They were the best in class and offered the suite of tools we were looking
for to move our shrink reduction plan forward and to improve team member and customer safety."
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Retailer Profile - Family Dollar Stores in USA
Iverify President Mike May explained the system: "[Family Dollar is] using a robust application that uses Cernium analytics for locationbased risk assessment that triggers local announcements in the vicinity of high-shrink products. Further, with sophisticated time-based
analysis, it then escalates the risk profile and engages a live intervention from a protection specialist." He continued: "They then assess
and respond to a protocol based in the actual risk. This is a best case model leveraging intelligent video coupled with a loss-prevention
certified specialist that responds and reduces the customer's potential shrink losses."
April - US retailer Family Dollar Stores has promoted Brad Rogers to the role of Vice President of Real Estate Development. Rogers
previously served as the company's Regional Vice President of the real estate portfolio and new stores. In his new role, Rogers will
report Keith Gehl, Senior Vice President of Real Estate and Facilities.
April - US-based discount retailer Family Dollar has integrated OTCNetwork acceptance into its POS terminals, so that Medicare
Advantage Members can use their OTCMedicare cards to purchase self-care items. Previously, members had to either order items from
a catalogue or buy the items out of their own pocket before getting reimbursed from their health plan.
Don Hamblen, Senior Vice President of Customer Marketing for Family Dollar commented: “Through acceptance of OTCNetwork and
the OTCMedicare-branded benefits card, Family Dollar offers Medicare Advantage plan members both convenient retail access to their
OTC benefits, and the ability to stretch their OTC benefit dollars further with our every day low prices."
March - US retailer Family Dollar is to expand its consumables segment this year at the expense of some discretionary categories.
Homewares have also been identified as a segment for growth, as President and COO James Kelly said: "We saw a solid performance
in both home and apparel, we will continue to work on those areas. They are part of our strategy, and we will work on them. But given
the macroeconomic event, we will do so cautiously."
CEO Howard Levine said: "Our plan is to increase our investment in consumables... And broaden our assortment of food and health
and beauty aids while reducing some more discretionary areas."
Family Dollar will also increase promotions as well as instore and direct marketing campaigns in a bid to push its consumable s and
private label goods.
March - US-based discount retailer Family Dollar has announced that net sales for the second quarter ended 26 February were
USD2.26 billion, an increase of 8.3% from the same period last year. Comparable store sales increased by 5.1% in the second quarter.
The company stated that January store sales suffered from winter storms but that the sales have benefitted from the early spring
weather in February. The strongest sales for the company were in the Consumables and Seasonal categories. Family Dollar also
reported that it opened 61 new stores in the second quarter. The company will report full second quarter financial results 30 March,
2011.
Family Dollar has also been urged by private equity firm Trian to reconsider its USD7.6 billion takeover offer, which was recently
rejected by the discounter. In an open letter filed with the Securities and Exchange Commission, Trian said it felt its offer was fair and
criticised the retailer’s strategy, saying that it would not help Family Dollar catch up with larger rival Dollar General.
The letter read: "The company's strategic plan is vague... There are no specific targets or timeframe. Even if Family Dollar delivers over
the next two and a half years.... Family Dollar would still be materially underperforming the operating metrics that Dollar General
achieves today."
March - US-based discount retailer Family Dollar has appointed two new Vice Presidents within its management team. Steven Burt has
been named Vice President - Treasurer, having served as Divisional Vice President for the Treasury. David Styka has been appointed
to the position of Vice President - Finance, moving from his previous position as Divisional Vice President of Tax.
Ken Smith, Senior Vice President, Chief Financial Officer commented: “Both Steve and Dave have made significant contributions to our
finance organisation, and their promotions reflect our continued commitment to the needs of the business and our ongoing initiatives.”
March - US discounter Family Dollar is to make 100 redundancies, mostly at its corporate headquarters, a week after turning down a
buyout offer from Nelson Peltz-owned Trian Group. Company Spokesman Josh Braverman said the redundancies affected all of the
company's corporate divisions but did not reach down to the store level.
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Retailer Profile - Family Dollar Stores in USA
Family Dollar Chairman and CEO Howard Levine said the move was aimed at making the business more efficient: "We continue to
believe there are substantial growth opportunities for Family Dollar, and to best capitalise on these opportunities we must maintain a
lean, agile organisation.”
March - US discounter Family Dollar has selected Marketing Management Inc (MMI) for help in private brand sourcing, product
development, category analytics, assortment strategy, quality assurance and customer insights.
"Enhancing our private brand assortment to drive margin improvement and customer loyalty is a key strategic initiative for Family
Dollar," said Don Hamblen, Family Dollar Senior Vice President, Customer Marketing. "Private brand merchandise gives our value
conscious customer more choices at lower prices without lower standards. Our alignment with MMI will help ensure our assortment is
focused on quality and value across all our consumables departments."
February - US discount retailer Family Dollar Stores has received a buyout offer from investment group Trian, which is headed by
businessman Nelson Peltz, in a move that values the retailer at up to USD7 billion. According to the Financial Times, Trian controls 8%
of Family Dollar’s shares, making it the company’s largest shareholder. It has offered to buy the rest of the shares up at between
USD55-60 per share, and also offered Family Dollar Chairman and Chief Executive Howard Levine “the opportunity to participate as an
investor”, the company said. The final decision, however, rests with Family Dollar’s shareholders, although Trian did say it may seek
Board representation in future.
February - US discount retailer Family Dollar is to open a new USD70 million distribution centre in Ashley, Indiana, The Journal Gazette
reports. The 815,000 square foot facility will be operational in spring 2012.
A Spokesperson for the retailer said: “We see the whole Midwest as a great opportunity. Ohio, Indiana and Illinois are all great markets
for us.”
January - Family Dollar Stores has appointed Paul White to the position of Senior Vice President – Apparel, Home and Seasonal. White
was formerly President, CEO and Director of Goody’s LLC where he refocused the merchandising and marketing strategies while
leading the company’s exit from bankruptcy. He will report to Dorlisa Flur, Executive Vice President and Chief Merchandising Officer.
2012
October - US discount retailer Family Dollar has named Colin McGinnis as Senior Vice President Store Operations Support, Store
Development & Procurement. McGinnis will report to Barry Sullivan, Executive Vice President, Store Operations. McGinnis joined
Family Dollar in 2004 as a Regional Vice President. In 2006, he was named Vice President of Store Operations Support & Proces s
Improvement.
October - US-based discount retailer Family Dollar has announced the appointment of Jocelyn Wong as new Chief Marketing Officer.
She will report to the President and Chief Operating Officer Michael Bloom. Wong previously held the position of Group Vice President
of Shopper Marketing for Safeway.
Bloom commented: "Effectively communicating our everyday value pricing to our customer is critical to driving trips and reinforcing our
brand to grow our market share. In a highly competitive retail environment, Jocelyn brings the experience and strategic vision we need
to drive innovation in how we communicate to our customer to differentiate our brand and improve customer loyalty through our
circulars and instore experience."
August - US-based discount retailer Family Dollar has announced the appointment of Holly Shaskey-Platek to the role of Senior Vice
President of Merchandising leading the home, apparel and seasonal divisions. Shaskey-Platek has worked as a consultant for Family
Dollar since 2008, providing company-wide change management leadership and will report to Chief Merchandising Officer, Paul White.
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Retailer Profile - Family Dollar Stores in USA
White commented: "Capitalising on a greater share of customers' discretional needs is critical to our ability to increase the sales
productivity of our stores and to grow our market share. Under [Shaskey-Platek’s] leadership, we will continue to focus on assortment,
merchandise presentation and promotion, supplier relationships, and business capabilities."
May - US discounter Family Dollar has partnered with US buying group McLane. The partnership will take effect in September and
allow Family Dollar to offer a wider range of products as well as tailor the merchandise to meet local market demands. Family Dollar will
also have the ability to grow its refrigerated and frozen food offer with a national supply chain that will involve 19 of McLane’s
distribution centres.
Howard Levine, Chairman and CEO, said: "We are broadening our assortment and increasing our relevancy to our customers.
McLane's national footprint and broad distribution network make them a great partner to support our growth initiatives."
April - US-based discount retailer Family Dollar has announced that its Vice Chair of Strategy and Chief Administrative Officer, Dorlisa
Flur, will be leaving the company 2 May 2012. Howard Levine, Chairman and Chief Executive Officer commented: “Dorlisa has served
the company in a variety of leadership roles and has been a valued part of our team. Her contributions to Family Dollar's success are
greatly appreciated, and we wish her all the best in her future endeavours."
April - US discounter Family Dollar Stores has signed a multi-year deal with PepsiCo to sell its drinks with immediate effect, the
Associated Press reports. The agreement builds on the retailer’s current offer of PepsiCo brands, including Gatorade, Frito-Lay and
Quaker Oats products, although the terms of the deal were not announced. The contract does not impact on Family Dollar’s
longstanding partnership to sell beverages from The Coca-Cola Company.
April - US discounter Family Dollar Stores has appointed Jon Broz as Vice President and Assistant General Counsel of Litigation. Broz
will report to James Snyder, Senior Vice President, General Counsel and Secretary. Broz most recently served in the same role as his
new position at Lowe’s and prior to that worked for Collective Brands. Snyder said: “[Broz] has a strong reputation for worki ng closely
with his clients and seeking creative solutions to resolve disputes quickly and cost effectively.”
April - US discount retailer Family Dollar has announced the appointment of Mary Winston as Executive Vice President and Chief
Financial Officer. Winston, who will report to Chairman and Chief Executive Officer Howard Levine, previously held the role of Senior
Vice President and Chief Financial Officer of US grocery retailer Giant Eagle. Winston will take over the position from Kenneth Smith
who will transition the role by serving as Senior Vice President of Finance until October 2012. Levine commented: “With more than 25
years of financial management and leadership experience, [Winston] is an excellent addition to our team. Her extensive financial
experience combined with her strong communication and analytical skills make her a great choice to help us execute against our
strategic plan to expand our market share and drive greater financial returns.”
April - US discounter Family Dollar is to open a new distribution centre in St George, Utah. The retailer will invest USD80 million in the
new facility, which will be located in the Fort Pierce Industrial Park, and plans to have it in operation by summer 2013. The facility will
generate approximately 450 full-time jobs and be the retailer’s 11th distribution centre in the country. Construction of the 800,000
square foot (73,000 square metre) depot will start this summer.
January - US discount retailer Family Dollar is to increase the deployment of Kronos’ workforce management solution to control labour
costs, minimise compliance risks and improve productivity. The company has selected Kronos’ integrated time and attendance and
forecasting and scheduling solutions. The workforce management system has already helped Family Dollar maintain accuracy in payroll
processing. Michael Newman, DVP of Store Operations at Family Dollar said: "Workforce management is at the core of our long-term
success. We have achieved many benefits from the Kronos solution since implementing it in 2010. Employee retention is at our highest
levels ever and customers continue to receive superior service."
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Family Dollar (Discount variety stores) - Retailer
Overview
Store Concepts
Family Dollar Stores are relatively small outlets sited in neighborhood locations, offering basic everyday merchandise in a no-frills
environment.
Operating characteristics
Family Dollar's typical store size is between 7,500-9,500 square feet (700-900 gross square meters) and most of them are operated
under leases. Small average size allows new units to be sited in a selection of locations including rural areas, small towns and major
urban centers (with the latter fast becoming a favored location for the company). At the end of fiscal 2012, 23% of stores were located
in large urban markets and approximately 20% were located in small urban markets or suburban areas with the remainder in rural
areas. Approximately 60% of stores are in strip malls, 38% in freestanding buildings, and 2% in downtown buildings. Stores trade
Monday to Saturday, with most open on Sundays. A typical outlet employs seven staff members.
The typical Family Dollar store carries approximately 5,000–5,500 basic SKUs, with fluctuations in seasonal items throughout the year.
The number of
SKUs per store varies based on store size, location and merchandising initiatives among other factors. In 2011, the average transaction
size was USD9.91. Family Dollar sales per store is, on average, about USD1.2 million per store.
Shopper characteristics
The stores and their merchandise are targeted at the basic needs of customers primarily in the low and lower-middle income brackets.
Typically, a Family Dollar store serves the basic needs of customers primarily in the low and middle income brackets. Typically, the
customer is a female head-of-household. Approximately 56% of its customers had annual gross income of less than USD40,000 and
approximately 25% had an annual gross income of less than USD20,000. Approximately 35% of its customers were African American
or Hispanic, and approximately 72% of the customers were age 45 or older.
The average Family Dollar store has over 2,000 customers per week.
Merchandise mix
Family Dollar continues to expand its consumables offer, adding more food and basic household items (i.e., health & beauty, pet, etc.)
in an effort to drive traffic and impulse purchases. The retailer reported that consumables sales increased by more than 13% to 69% of
its total sales in fiscal 2012. Family Dollar is reconfiguring instore space and sets to accommodate new food and health & beauty items.
The retailer also continues to add more refrigerated coolers and freezers to its stores. It intends to continue to increase its assortment
of frozen and refrigerated products as a result of its partnership with McLane Co., which became official in September 2012.
As of July 2012, Family Dollar offered 1,750 food SKUs, up from 700 in fiscal 2007. Health and beauty SKUs totalled 2,750, up from
1,700 in fiscal 2010.
Payment methods
Retailer Profile - Family Dollar Stores in USA
Family Dollar stores currently accept cash, checks and, in most stores, PIN-based debit cards. The retailer recently installed new
technology in its stores that facilitates the acceptance of credit cards and other electronic payment types.
Structure & Key Contacts
Contact Details
Family Dollar
Discount variety stores
P.O. Box 1017
Charlotte, North Carolina
28201-1017
Tel: (704) 847-6961
Web: www.familydollar.com
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Strategy
Private Label
Private Labels
See Strategy -> Marketing -> Brand and Private Label Strategy
Retailer Profile - Family Dollar Stores in USA