Family Dollar’s Q3 net income drops 3%; announces merchandising changes
Matthews, N.C. — Family Dollar reported lower net income in the third quarter of 2013 as its shoppers continue to hold off on discretionary spending. The discounter also named Jason Reiser to the position of senior VP merchandising.
Family Dollar posted net income of $120.9 million, down 3% from $124.5 million in the year-ago period. Its results, however, topped expectations.
Sales rose 9% to $2.57 billion. Same-store sales increased 2.9% as a result of higher customer transaction totals and traffic volumes.
Family Dollar chairman and CEO Howard R. Levine said the company is doing well in the face of economic challenges for its customers and will adapt to expected continuing fiscal difficulties for consumers.
“Our consumables sales remained strong and we continued to gain market share,” Levine said. “However, our discretionary sales remained challenged as our customers have been forced to make spending choices between basic needs and wants. Consistent with market trends, we expect that our customers will continue to face financial headwinds. We are adapting accordingly, and we are focused on stabilizing gross margin, controlling expenses, improving inventory productivity, and driving greater operational efficiencies.”
For fourth quarter 2013, Family Dollar expects same store sales to increase 2%. For fiscal year 2013, the retailer anticipates an increase in same-store sales of between 3% and 4% and approximately 500 new store openings and 30-50 store closings. During the third quarter, the company opened 129 new stores, closed three stores, and renovated, relocated or expanded 228 stores.
As senior VP merchandising, Reiser will replace John Scanlon, who retired from the company at the end of March. Reiser comes to Family Dollar from Sam’s Club, where he spent more than 17 years in a variety of roles, most recently serving as VP merchandising, health and family care.
In addition, Paul G. White, executive VP, chief merchandising officer, has left the company to pursue other interests. Michael K. Bloom, president and COO, will assume executive responsibility for merchandising while Family Dollar searches for a permanent replacement.
Parent company of Ebates.com names new CFO
SAN FRANCISCO — Performance Marketing Brands, which owns and operates cash-back shopping sites that include Ebates.com, has appointed David Oppenheimer as the company’s new CFO.
Most recently, Oppenheimer was CFO at ServiceSource, a global recurring revenue management and technology company. Oppenheimer will manage finance, accounting, HR, facilities and various operational and administrative functions for all PMB properties, including Ebates.com, Ebates Canada, FatWallet, AnyCoupons, One Receipt and Pushpins.
“We are pleased to have an executive with David Oppenheimer’s experience join Performance Marketing Brands,” said Kevin H. Johnson, CEO of PMB. “David’s leadership and proven track record of driving growth as a public company CFO will be invaluable as we scale our business.”
Oppenheimer has more than 25 years of executive financial leadership experience, and has led companies through successful IPOs and strategic acquisitions, including at Digital Impact, where he managed the IPO process, the acquisition of three companies and the company’s sale to a strategic buyer. Oppenheimer’s executive roles also include CFO for Mindjet and Hands-On Mobile, and senior financial leadership positions at Autodesk, AlliedSignal and United Airlines.
“I am thrilled to join PMB’s dynamic and talented team,” said Oppenheimer. “Together we will continue to innovate and grow as we expand the reach of our shopper loyalty programs.”
Oppenheimer has a BS in mechanical engineering from University at Buffalo, the State University of New York, and an MBA from the University of California, Berkeley.
ECRM names new CEO amid shareholder changes
SOLON, Ohio — Efficient Collaborative Retail Marketing announced that BV Investment Partners has become its majority shareholder, and Greg Farrar has been named ECRM’s CEO as a result.
With the transition, Mitch Bowlus will be stepping down as president. “I’m excited to partner with BV to help bring the company that my father and I built together to its next stage of growth,” he said. “I will continue to be a significant shareholder and will be involved in the future strategic growth of the business but will be transitioning out of the day to day operations. With this, I am pleased to announce Greg Farrar as our new CEO.”
“This is about growing and serving our customers better. It’s about taking the opportunity to enter into markets [ECRM doesn’t] currently serve yet,” stated Farrar.
Farrar was formerly Trade Only Design Library, a leading online product research and specification library. Under Farrar’s leadership, TODL’s professional membership grew by 50% while its manufacturer library increased by more than 60%.
Prior to his time at TODL, from 2007 until 2010, Farrar served as president of Nielsen Business Media, a 760 employee, $310 million business-to-business media company. Prior to that, in 2006 Greg was appointed COO of Nielsen Business Media where he spearheaded the market-focused reorganization of the company’s operations.
Founded in 1994 by the late Charlie Bowlus and his son Mitch Bowlus, ECRM is known for strategic events and promotional tracking and analysis in the consumer packaged goods industry.