What is in this article?:
- Food Lifts Family Dollar Q4 Results
- 13%-15% Net Sales Increase Predicted
"It’s clear that our customers are voting with their wallets and really like our new expanded assortment."
— Howard Levine, chairman and CEO, Family Dollar
13%-15% Net Sales Increase Predicted
Family Dollar is projecting a net sales increase for the year between 13% and 15%, with comp-store sales expected to rise between 4% and 6%. It also expects shrink will rise and markdown will be higher during the first quarter.
The company expects to open 500 new stores in the fiscal year, up slightly from 475 new stores in fiscal 2012. Capital expenditures are expected to be around $600 million to $650 million. The company expects to open a new distribution center in St. George, Utah, late next summer, which will support store growth in the Western states.
Levine said the merchandise changes helped to create “an opportunity” to reach higher-income shoppers.
More news: Family Dollar Adds More Food SKUs
“We’re still in the early innings in terms of making our stores more appealing to that type of customer. But when I think about what we’ve done with the renovation program, the way we’ve grown our assortment, [and] importantly, our focus on improving the quality of our private-brand merchandise. … All of those things are critically important not only to our core customer, but particularly this higher-income customer,” he said.
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