Fred's reports decline in sales

MEMPHIS, Tenn. Fred's on Thursday reported a 1% decline in total sales for the five weeks ended April 4, generating $175.4 million in sales.

The decline reflects the closing of 74 underperforming stores and 22 underperforming pharmacies last year, the discounter reported. Excluding stores closed during 2008, total sales from ongoing stores increased 4% in March versus the same month last year. Comparable-store sales for the month rose 1.9%, versus an increase of 1.2% in the same period last year.

“Our progress in building both traffic and average ticket continued during March, as indicated by comparable-store sales growth at the high end of our plan,” stated Bruce Efird, Fred’s CEO. “This performance, which also reflected higher pharmacy department prescription counts is gratifying, considering the tough retail environment we face. Those same challenges, however, continue to drive growing consumer interest in discount retailers, and Fred's remains well positioned to deliver great value to its customers.”