Family Dollar Q3 profit up, misses Street
Matthews, N.C. — Family Dollar Stores’ third-quarter net income increased 6.5% as broader markdowns drew more store traffic. Its results, however, fell short of analysts’ expectations.
For the quarter ended May 28, Family Dollar had net income of $111.1 million, compared with $104.4 million a year earlier.
Revenue was up 8% to $2.15 billion. Same-store sales rose 4.7%.
Family Dollar said sales were strongest in consumables and home products.
Wal-Mart cutting gas prices for three months
Bentonville, Ark. — Wal-Mart Stores is cutting gas prices by 10-cents a gallon for three months to help consumers worried about their spending amid a sputtering economy and busy summer travel season. The chain said that customers visiting participating Murphy USA and Walmart gas stations in 18 states through Sept. 30 will receive a discount on all fuel, gas and diesel purchases when they use a reloadable Walmart gift card, Walmart MoneyCard or a Walmart credit card.
"Our customers have told us that high gas prices are a top budget concern, nearly as large an expense to their households as food and groceries," CMO Stephen Quinn said in a statement.
Supervalu reduces garbage expenses by 12%, plans more zero-waste stores
Eden Prairie, Minn. — Supervalu announced that its ongoing commitment to reducing waste culminated with a milestone in fiscal year 2011, marking the first time recycling revenues exceeded landfill waste expenses. In total, the company reduced garbage expenses by 12.6% over last year’s levels, while also conducting an aggressive cardboard recycling initiative that nearly doubled revenues from the previous year. The end result was the company’s waste and recycling program posted a profit to the company’s bottom line.
In related news, Supervalu announced plans to transition 40 stores under its Albertsons banner to zero-waste operations during the company’s current fiscal year, which ends on February 29, 2012.
The commitment comes as part of Supervalu’s release on Wednesday of its 2011 Corporate Social Responsibility Report, which highlights the company’s accomplishment of becoming the first retailer to achieve zero-waste classification at two of its Albertsons grocery stores in Santa Barbara, Calif., last November.
“We are aggressively seeking ways to build on our sustainability achievements from this past year,” said Andy Herring, executive VP, real estate, market development and legal. “While this year’s CSR report captures some of the excitement we shared in being the first food retailer to achieve zero waste in the U.S. at two of our California stores, we truly believe this is the tip of the iceberg for us.”
Supervalu’s additional zero waste stores will be located primarily in the Albertsons banner, while also expanding similar efforts across the enterprise. To achieve this recognition, stores must divert at least 90% of all waste from landfills — a feat accomplished in part through increased associate engagement, recycling, composting and the company’s Fresh Rescue food bank donation program, to which Supervalu contributed more than 60 million lbs. of food last year.
“Our commitment to significantly increase the number of zero waste stores is part of a long-term strategy for Supervalu to be a leader in the area of environmental sustainability,” said Herring. “At the same time, we are committed to these projects because we’ve also seen that they make a positive financial impact on our business, a true win-win.”
During the past year, Supervalu has compiled an impressive list of sustainability and social responsibility achievements, which are highlighted in the 2011 CSR Report.