Full Description

Family Dollar Stores, Inc. (Family Dollar), incorporated in 1969, operates a chain of more than 6,600 general merchandise retail discount stores in 44 states, providing consumers with a selection of merchandise in neighborhood stores. The Company’s merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics. The Company’s products include health and beauty aids, packaged food and refrigerated products, home cleaning supplies, housewares, stationery, seasonal goods, apparel and domestics. During the fiscal year ended August 30, 2009 (fiscal 2009), the Company opened 180 stores, closed 96 stores, relocated 10 stores within the same shopping center or market area, and expanded or renovated 41 stores. During fiscal 2009, approximately 20% of the Company’s stores were located in large urban markets (markets with populations above 200,000), and approximately 26% of the Company’s stores were located in small urban markets (markets with populations greater than 75,000 but less than 200,000) or suburban areas. During fiscal 2009, approximately 18% of its new store locations were opened in large urban markets and 39% of new locations were opened in small urban or suburban markets.

The Company’s stores offer a variety of general merchandise. The consumables category includes household chemical, paper products, candy, snacks and other food, health and beauty aids, hardware and automotive supplies, and pet food and supplies. The home products category includes domestic items, such as blankets, sheets and towels, as well as housewares, giftware and home decor. The apparel and accessories category includes men’s, women’s, boys’, girls’ and infants’ clothing, shoes and fashion accessories. The seasonal and electronics category includes toys, stationery and school supplies, seasonal goods and personal electronics, including pre-paid cellular phones and services. During fiscal 2009, brand name merchandise accounted for approximately 52% of sales. Merchandise sold under the Company’s private label program, across all merchandise categories, accounted for approximately 19% of sales. Merchandise sold under other labels, or which was unlabeled, accounted for the balance of sales. During fiscal 2009, closeout merchandise accounted for approximately 2% of sales.