Fred’s amps up the treasure hunt
Fred’s, the deep-discount retailer in the southeast, has launched a new treasure hunt concept, “Fred’s Closeout Bonanza,” that drops prices throughout the week until all the items are gone.
The first two Fred’s Closeout Bonanza locations opened this past Saturday in Bartlett and Memphis in Tennessee.
Every Saturday, the store is refilled with new merchandise, all priced at $9.99. A microsite for the concept highlights a number of items available for sale that were worth well over $9.99, including a Mr. Coffee coffeemaker, a Fitbit flex 2, a set of Skullcandy Hesh 2 headphones and an OtterBox Defender Series iPhone case.
On Sunday, prices for whatever is still available across the store are reduced to $4.99. Fred’s then lowers prices to $2.99 on Monday, to $1.99 for Tuesday and Wednesday, 99 cents on Thursday and 19 cents on Friday.
Fred’s site states: “Pick the shopping strategy that meets your needs! Come Saturdays to get everything hot off the truck! Come later in the week for smaller crowds and deeper discounts!”
All sales are final. The store also has a few “Rules,” including no pushing or running in the store and no opening item packaging.
Fred’s restocks stores late Friday with a promised mix of different goods. The items include inventory being liquidated from other Fred’s stores, merchandise returned to other retailers and special purchases arranged by Fred’s.
The retailer launched the concept after testing treasure hunt sections inside five regular stores.
“We saw the opportunity for doing something different, something no one else is doing in the Memphis area,” Fred’s marketing manager Amanda Smith told Memphis Commercial Appeal. “We’re putting products in the stores that are excellent deals, even at $9.99.’’
Fred’s Closeout Bonanza’s pricing scheme appears unique for traditional retail. In Texas, Family Thrift Center uses a similar price-dropping scheme, pricing all items on Thursday when new inventory arrives at $2.00 and gradually bringing them down to 25 cents by Wednesday.
- Fred’s Closeout Bonanza – Fred’s
- Treasure-hunt shopping style drops prices every day at 2 new Fred’s stores – Memphis Commercial Appeal
- Family Thrift Center
DISCUSSION QUESTIONS: Do you expect the Fred’s Closeout Bonanza pricing concept to catch on with consumers? Does the execution and economics involved make sense for other retailers?