Fred’s reports sales increase for September

MEMPHIS, Tenn. Discount druggist Fred’s Inc. on Thursday posted a sales increase of 4% to $166.6 million for the five weeks ended Oct. 3. Comparable store-sales for the month increased 3.3%, versus an increase of 1.1% in the same period last year.

“September sales were strong, bringing third quarter-to-date sales back in line with our forecast,” stated Bruce Efird, Fred’s CEO. “General merchandise performed well as additional promotional activity drove positive traffic [and] pharmacy department sales also were above plan as we continued to see strong gains in script counts and experienced an early onset of the flu season.”

Fred’s total sales for the year-to-date period decreased 1% to $1.2 billion. Excluding stores closed, total sales from ongoing stores increased 2% in the first eight months of 2009 versus the prior-year period. On a comparable store basis, year-to-date sales increased 0.9% compared with 3.1% in the same period last year.

At the end of September, Fred’s store development team was able to open the company’s first upgraded prototype. Fred’s also opened two pharmacies and closed nine stores during the month.