» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 127 | NO. 194 | Thursday, October 04, 2012

Fred's September Sales Figure Drops

AP

Print | Front Page | Email this story | Comments ()

Memphis-based discount-store operator Fred's Inc. said Thursday that a key revenue figure fell 3.8 percent in September, hurt by a shift of drug sales from name brand to generic in its pharmacy department.

Analysts expected a smaller 1.8 percent drop in revenue in stores open at least one year, according to Thomson Reuters. The measure is important to retailers because it excludes sales from new stores and stores that have closed recently.

Total sales for the five weeks ended Sept. 29 rose 1 percent to $170.9 million.

"The impact of generic pricing on the major brand conversions was dramatic," said CEO Bruce Efird.

Usually, market changes occur over six to nine months, but this conversion happened at a more rapid pace, involving a period of only 30 to 45 days.

Lower tobacco sales also hurt results. Pet products, hardware and food were stronger categories.

Year-to-date, revenue in stores open at least one year fell 1.2 percent and total revenue rose 3 percent to $1.28 billion.

Fred's operates about 700 discount stores in the Southeast.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 75 255 11,693
MORTGAGES 72 295 15,274
FORECLOSURE NOTICES 3 71 2,982
BUILDING PERMITS 198 590 27,844
BANKRUPTCIES 62 280 11,242
BUSINESS LICENSES 35 98 4,136
UTILITY CONNECTIONS 94 516 17,000
MARRIAGE LICENSES 18 80 3,544

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.