Fred's Reports May Sales

  Fred's Reports May Sales

Business Wire

MEMPHIS, Tenn. -- June 6, 2013

Fred's Inc. (NASDAQ: FRED) today reported sales for the four-week month of
May, which ended June 1, 2013.

Fred's total sales for the month increased 0.2% to $152.4 million from $152.1
million in May 2012. Comparable store sales for the month decreased 0.5%
compared with an increase of 1.3% in the same period last year.

Fred's total sales for the first four months of fiscal 2013 increased 0.2% to
$653.9 million compared with $652.6 million for the same period last year. On
a comparable store basis, year-to-date sales decreased 1.1% versus an increase
of 0.1% for the year-earlier period.

Commenting on the announcement, Bruce A. Efird, Chief Executive Officer, said,
"May comparable stores were consistent with the outlook we shared last week in
connection with first quarter results. Unseasonal cool and wet weather in May
continued to have a negative impact on lawn and garden merchandise, summer
toys, and other seasonal departments. Additionally, the sales impact of the
ongoing brand-to-generic conversion in the pharmacy department more than
offset continued growth in script counts. We estimate that this shift reduced
total and comparable store sales for the month by approximately 200 basis
points. On balance, our results for May provide an encouraging start to the
second quarter, and we are pleased that our reconfiguration initiatives
continue to gain traction as seen in the overall positive comparable sales in
our general merchandise and the total script growth in our pharmacy
department."

Fred's, Inc. operates 715 discount general merchandise stores, including 21
franchised Fred's stores, in the southeastern United States. For more
information about the Company, visit Fred's website at www.fredsinc.com.

Comments in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include, but are not
limited to, general economic trends, changes in consumer demand or purchase
patterns, delays or interruptions in the flow of merchandise between the
Company's distribution centers and its stores or between the Company's
suppliers and same, a disruption in the Company's data processing services,
costs and delays in acquiring or developing new store sites, and other
contingencies discussed in the Company's Securities and Exchange Commission
filings. Fred's undertakes no obligation to release revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unforeseen events, except as required
to be reported under the rules and regulations of the Securities and Exchange
Commission.

Contact:

Fred's Inc.
Jerry A. Shore, 901-362-3733, Ext. 2217
Executive Vice President and Chief Financial Officer
 
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