October 9, 2014
Fred’s CEO Bruce A Efird is confident about the company’s initiatives to reposition the convenience-center model, expand marketing and implement new technology – all factors that he expects will help restore growth in the fourth quarter and next year.
Efird added that the initiatives are already producing positive results, despite customer traffic remaining a challenge in the company’s markets.
Total sales for September increased 3.3% to $183.6 million from $177.8 million in September 2013. Comparable store sales for the month increased 0.2% on top of an increase of 2.8% in the same period last year. General merchandise inventory has been significantly lowered, Efird said, and the company’s clearance programs to address unproductive inventory, once again, exceeded the sales plan for September.
Fred’s total sales for the year-to-date period increased 1.5% to $1.32 billion from $1.30 billion for the same period last year. On a comparable store basis, year-to-date sales decreased 0.5% versus an increase of 0.8% for the year-earlier period.
“Our September comparable store sales continued the positive trend we have experienced in recent months in spite of the strong sales performance posted in the same month last year. Our initiatives to emphasize our convenience-center model continue to gain traction throughout the business,” Efird added. Additionally, our pharmacy department performed well with increases in both comparable scripts and sales. We are very excited to have our new pharmacy prime vendor agreement in place, which will not only accelerate gross margin improvement in the pharmacy department, but will also support our pharmacy expansion initiatives.”
During the month, Fred’s closed five full service stores and one Xpress location. Fred’s operates 701 discount general merchandise stores, including 21 franchised Fred’s stores, in the southeastern United States.
Source: Retailing Today
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