Family Dollar, which began in North Carolina in 1959, is on a growth streak and has plans to open 300 new stores in the coming fiscal [image-nocss] year from September to August, said The Memphis Daily News. In addition to the openings, Family Dollar is renovating more than 900 of its stores, according to company public relations manager Josh Braverman.
"I think the 300 new stores is in response to a couple of things," he told the newspaper. "Certainly the tough economic environment that we find ourselves in has definitely brought in a new customer to Family Dollar to maybe experience us for the first time. And it reinforces the value proposition that we know our core customer comes to us to save when they need to on items they need and use every day."
The economy's effect on the real-estate market also has presented the chain with opportunities to put stores in locations it might not have been able to get into in the past. "As a low-cost operator, finding a viable location for us to put our stores where we can make money but also provide great value has been challenging to some degree, but now we find an opportunity to reach out to the customer who may not have come to us in the past in a convenient environment for them," Braverman added.
In the quarter that ended May 28, Family Dollar reported net sales of $2.15 billion, compared to $1.99 billion during the same quarter in 2010. Net income for the quarter rose to $111.1 million compared to $104.4 million during the same quarter in 2010.
Also during its third quarter, Family Dollar expanded its food assortment by about 20% and its assortment of health and beauty aids by about 25% in more than 5,000 stores, said the report.
Family Dollar bills its core customer as a female head of household in her mid-40s making less than $40,000 a year.
"Our CEO has said he would put our new renovated store format up against any discount retailer in the country," Braverman said. "What we've done is we've widened the aisles. We've increased the assortment of consumables, which are those basic everyday needs. And we've increased the assortment of our name brands, which is a nice comfort factor for that new higher-income customer."
Matthews, N.C.-based Family Dollar bills itself as "providing value and convenience to customers in easy-to-shop neighborhood locations." Its mix of name brands and quality, private-brand merchandise appeals to shoppers in rural and urban settings across 44 states, the company said. "Helping families save on the items they need with everyday low prices creates a strong bond with customers who refer to their neighborhood store as 'my Family Dollar'," it added.
To commemorate the opening of the new Memphis store, Family Dollar kicked off the festivities last Thursday with a ribbon-cutting ceremony led by Levine. It completed the celebration with a $7,000 donation to the Mid-South Food Bank, along with cans of food donated by members of the local community. Following the presentation, families and attendees were treated to Family Dollar merchandise specials, deals and complimentary prizes, along with a Coca-Cola Refreshment Experience featuring games, product samples and light catering.
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