Fred's reports increase in Q3 sales

MEMPHIS, Tenn. Discounter Fred’s on Thursday posted sales of $422.7 million for its third quarter ended Oct. 31, up 1%.

Comparable store sales for the quarter increased 1%, compared with a 1.4% increase in the third quarter last year.

“We experienced a solid sales performance in our pharmacy department during October, highlighted by strong script growth as our Prescription Plus program continues to gain momentum,” stated Bruce Efird, Fred’s CEO. “In the general merchandise departments, sales for the month were below our projected range. For the quarter, overall comparable store sales ended at the midrange,” he said.

“Throughout the quarter, the key states where we are located have experienced unemployment of more than 10% – higher than the national average – resulting in customers who are both frugal and cautious,” Efird continued. “With competitive promotional activity accelerating, we adjusted our approach to maintaining market share by adding increased advertising and price promotions during the quarter. While it brought increased unit volume, total sales were below the required level to offset the added markdowns and advertising expense.”

During October, Fred’s opened four express pharmacy locations. For the third quarter, the company opened one store, eight pharmacies and closed nine stores.