FINANCE

Family Dollar sales rise 8.3%

BY CSA STAFF

Matthews, N.C. — Family Dollar reported today a comparable-store sales increase of 5.1% for the second quarter ended Feb. 26. Net sales for the quarter increased 8.3% to $2.26 billion, from $2.09 billion last year. According to the retialer, warmer weather earlier in the year as well as strong performance in its consumable and seasonal categories helped drive sales.

“Family Dollar continues to execute well against our strategic plan to accelerate revenue growth, expand operating margins and optimize our capital structure,” said Howard Levine, chairman and CEO. “Our investments to improve the shopping experience for our customers while enhancing our operational capabilities continue to deliver strong returns.”

The company said it now expects that earnings per diluted share for the second quarter of fiscal 2011 will be in the range of 97 cents to 98 cents per diluted share, compared with 81 cents per diluted share for the second quarter of fiscal 2010.

Family Dollar’s second-quarter performance will make it even more enticing to investors who have shown a growing interest in discount stores. Last month, Family Dollar Stores received a buyout offer from a New York hedge fund at $55 to $60 per share, a 36% premium over yesterday’s closing price. The offer, which values the company at up to $7.6 billion, was made by Trian Group, which is headed by activist investor Nelson Peltz.

Investors have also shown interest in other dollar stores. 99 Cents Only Stores, according to the Associated Press, has received a proposal to take the company private from the company’s founding family and investment firm Leonard Green & Partners LP for $19.09 per share, the Associated Press reported.

The offer would value the company at about $1.3 billion. According to 99 Cents, the purchasers would include the Schiffer-Gold family, which owns about 33% of its outstanding stock. David Gold is company founder and chairman, and his son-in-law Eric Schiffer is CEO.

Whether any of the aforementioned deals go through remains, to be seen, but it is clear that is a good time to invest in dollar stores while they still have a strong appeal to consumers still looking to save in difficult economic times.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Rite Aid implements medication disposal program

BY CSA STAFF

Camp Hill, Pa. — Rite Aid is working with Sharps Compliance to help customers dispose of unused medications, the retailer said Monday.

Customers can buy a Sharps Compliance medication-disposal envelope at a Rite Aid store for $3.99, place unused prescription or over-the-counter drugs inside and then send it via the U.S. Postal Service to the incinerator.

“For years, Rite Aid has participated in community medication take-back events organized by local health officials and law-enforcement agencies,” Rite Aid senior VP pharmacy Dan Miller said. “Our customers often ask how to dispose of medication. By making these envelopes available in our stores, we’re offering an easy and safe disposal solution for customers looking to safely dispose of expired, unused or unwanted medications.”

Rite Aid said the envelopes are available at all Rite Aid stores except for those in Maine, where another program is available. Last March, Sharps Compliance teamed up with the National Community Pharmacists Association to offer member pharmacies discounted services for the Sharps TakeAway Environmental Return System.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
News

Family Dollar a hot commodity

BY CSA STAFF

MATTHEWS, N.C. — Family Dollar today showed why dollar stores are such a hot commodity right now by reporting a comparable-store sales increase of 5.1% for the second quarter ended Feb. 26. Net sales for the quarter increased 8.3% to $2.26 billion from $2.09 billion last year. According to the company warmer weathr earlier in the year as well as strong performance in its consumable and seasonal categories helped drive sales.

“Family Dollar continues to execute well against our strategic plan to accelerate revenue growth, expand operating margins and optimize our capital structure,” said Howard Levine, chairman and CEO. “Our investments to improve the shopping experience for our customers while enhancing our operational capabilities continue to deliver strong returns.”

The company said it now expects that earnings per diluted share for the second quarter of fiscal 2011 will be in the range of 97 cents to 98 cents per diluted share, compared with 81 cents per diluted share for the second quarter of fiscal 2010.

Family Dollar’s second-quarter performance will make it even more enticing to investors who have shown a growing interest in discount stores. Last month, Family Dollar Stores received a buyout offer from a New York hedge fund at $55 to $60 per share, a 36% premium over yesterday’s closing price. The offer, which values the company at up to $7.6 billion, was made by Trian Group, which is headed by activist investor Nelson Peltz.

Investors have also shown interest in other dollar stores. 99 Cents Only Stores, according to the Associated Press,has received a proposal to take the company private from the company’s founding family and investment firm Leonard Green & Partners LP for $19.09 per share, the Associated Press reported.

The offer would value the company at about $1.3 billion. According to 99 Cents, the purchasers would include the Schiffer-Gold family, which owns about 33% of its outstanding stock. David Gold is company founder and chairman, and his son-in-law Eric Schiffer is CEO.

Whether any of the aforementioned deals go through remains, to be seen, but it is clear that is a good time to invest in dollar stores while they still have a strong appeal to consumers still looking to save in difficult economic times.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...