Fred's credits health and beauty, specialty Rx for 12% Feb. sales lift

MEMPHIS — Fred’s continues to see sales increases as 2016 continues. The company reported Thursday that for the four weeks ending Feb. 27, it saw net sales of $171.1 million, a 12% increase over the same period last year. The announcement follows January’s sales, which also increased 12% over the same four weeks in 2015. Comparable store sales rose 0.8% for the month, compared to flat comps in February 2015. 

 

Once again, Fred’s CEO Jerry Shore is crediting specialty pharmacy sales with providing a sales boost. The bump sales saw from specialty was accompanied by an increase in scripts and sales in the pharmacy department, even amid a mild cold and flu season. Shore also credited health and beauty aids as particularly strong performers despite a negative effect the mild cold and flu season had on general merchandise. 

 

Shore noted that the company began remodeling some of its stores in February and promised more updates at its Q4 conference in late March.

 

“We remain encouraged by the momentum that continues to build across the Company," Shore said. "During February, we began the 2016 new prototype remodel program with five stores, a monthly pace we expect to maintain throughout most of the year. We also saw strong performance from the improvements made in 25 stores that benefited from competitive store closings during the month. We will provide more detail on our initiatives during our fourth quarter earnings conference call on March 23."