Family Dollar’s New-Store Sales Increase
Family Dollar Stores Inc.’s new stores are performing better than a year ago, with new-store sales running at about 86 percent of the average existing store, compared to a low-80 percent range last year, according to Chief Operating Officer David Alexander. The discount retailer has 4,303 stores and expects to open about 525 stores and close about 50 in the current fiscal year, which ends in August.
The discount retailer says net income rose $3.3 million, or six percent, to
$63.8 million for the second quarter ended March 2. Per-share earnings also
rose six percent, to 37 cents from 35 cents and two pennies above the consensus
among analysts polled by Thomson Financial/First Call.
Moderator Comment: Do Dollar Stores have expansion
opportunities outside their current socio-economic consumer demographic niche?
It isn’t any secret that dollar stores are the fastest
growing retail channel in the U.S. at present. Family Dollar’s announcement
comes right on the heels of a favorable quarterly financial report from Dollar
General. A point of difference between these competitors is that Dollar General
is currently testing sales of perishables such as dairy and meat in some of
its units. Family Dollar’s chief exec, Levine has indicated that his company
will not follow suit. [George
Anderson – Moderator]