STORES Magazine - July 2008 - (Page 26)

EXECUTIVE SUITE / MERCHANDISING STRATEGY Quick-Trip Strategy, Long-Term Plan Family Dollar grows by helping shoppers stretch food budgets BY SUSAN REDA, EXECUTIVE EDITOR I t’s a Thursday, and a single mother of two school-age children is in the throes of the early morning rush. As she packs lunches and sounds the “five minutes ’til we leave” warning, she takes stock of what’s left in the cabinet and refrigerator. Two slices of bread . . . maybe a cup of milk . . . a nearly empty jar of peanut butter. Pay day’s not until tomorrow, but she won’t make it on what she has left in the house. Boris Zelmanovich, vice president of merchandising stratAdept at squeezing every last penny, she stops off at the egy and operations for Family Dollar, adding that food local Family Dollar store on the way home from work. purchases are becoming a larger percentage of shoppers’ Along with the essentials, she picks up a box of spaghetti baskets. “Our strategy is focused on delivering goodand a jar of sauce for dinner — enough to tide her brood value, low-cost items in a convenient shopping environover until she can cash her check and head to the grocery ment to a growing value-conscious customer base.” store to re-stock. And the strategy appears to be clicking with Family DolWith more than 6,500 units across the country, Family lar’s hard-working, financiallyDollar has carved a niche as the goFAMILY DOLLAR stressed shoppers. The Matthews, to store for shoppers in need of a Net sales up 4.4% N.C-based chain, which will mark few quick essentials that won’t Comparable-store sales up 1.8% 50 years in business in 2009, postbreak the budget. Having spent the May 2008 Results ed $6.8 billion in revenues during last four years adding refrigerated the 2007 fiscal year. coolers and expanding its food offering, the company is in Thus far, fiscal 2008 has been a test for nearly every rea good position to capture these frequent trips. And, now tailer, and Family Dollar is no exception. Still, speaking at that many of the stores sell milk, the company is about a the Lehman Bros. annual retail conference in April, chairthird of the way through an upgrade of its point-of-sale man and CEO Howard Levine said he’s targeting compasystem which will allow shoppers to use electronic benerable-store sales gains of 1 to 2 percent for the year, fits transfer (EBT) and food stamps. “We’re going after the quick fill-in shopping trip,” says buoyed by a solid consumables business, better manage26 STORES / JULY 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - July 2008

STORES Magazine - July 2008
Executive Editor's Page
President's Page
Dearth of Retail Creativity
What Shoppers Think
Wow, Is That a Wawa?
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Merchandising Strategy
Point of Sale
Human Resources
Top 100 Retailers
Store Design
IT Operations
Systems Managements
LP Vantage Point
Cover Story
Emergency Response Systems
Background Checks
LOEB Retail Letter
Point of View
NRF News
Retail Crossword
Retail Industry Calendar
Last Laugh

STORES Magazine - July 2008