In the five-week fiscal month of June, ended July 5, Fred’s Inc. generated a total sales increase of 2% to $191.2 million from last year’s period. Comparable store sales for the month slipped 0.6%.
In comments on the announcement, CEO Bruce Efird, said, “Comparable store sales declined slightly for June, with the fourth week of the month being unusually soft as we were unable to place our new ad program for that week. For the weeks that the new ad program were in effect, sales and customer traffic patterns improved noticeably. Our pharmacy department continued to experience strong growth in June, highlighted by ongoing increases in both comparable scripts and sales.”
Efird stated that July “will be the first month that all the elements of our new marketing plan come together, including in-store marketing initiatives that promote the diverse product mix offered by our stores, together with our new, fully implanted ad program. We also will begin an aggressive clearance program in July to clear unproductive SKUs and exit or reduce product categories that do not align with our convenience center model. Our team is excited about these changes and confident we will continue to see a positive response from our customers to these initiatives.”
Fred’s, Inc. operates 704 discount stores in the southeastern United States, including 21 franchised Fred’s locations.