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VOL. 127 | NO. 194 | Thursday, October 04, 2012

Fred's September Sales Figure Drops

AP

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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 This material may not be published, broadcast, rewritten or redistributed.

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Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 95 460 14,043
MORTGAGES 101 520 16,304
FORECLOSURE NOTICES 0 0 0
BUILDING PERMITS 198 1,098 29,161
BANKRUPTCIES 48 285 9,323
BUSINESS LICENSES 26 123 4,603
UTILITY CONNECTIONS 45 277 10,236
MARRIAGE LICENSES 18 96 3,352

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