Fred’s, Inc. engages in the sale of general merchandise through retail discount stores and full service pharmacies. The company sells merchandise to its 21 franchises Fred's stores. As of February 1, 2014, the company had 704 retail stores, 355 pharmacies, and 1 specialty pharmacy facility located in 15 states mainly in the Southeastern United States. Fred's stores generally serve low, middle and fixed income families located in small- to medium- sized towns. The company’s stores stock approximately 12,000 frequently purchased items, which address the everyday needs of its customers, including nationally recognized brand name products, proprietary Fred's label products and lower priced off-brand products. Business Strategy The company’s strategy is to meet the general merchandise and pharmacy department needs of the small- to medium- sized towns it serves by offering various quality merchandise and a more attractive price-to-value relationship than either drug stores or smaller variety/dollar stores and a shopper-friendly format, which is more convenient than larger sized discount merchandise stores. The major elements of this strategy include various frequently purchased, basic merchandise; discount prices; and convenient shopper-friendly environment. Suppliers The company’s major suppliers include Procter and Gamble and AmerisourceBergen Corporation. Seasonality The company’s business is somewhat seasonal in that its sales volume is heavier around the first of each calendar month in addition to the peak Christmas selling season. Many of the customers who shop at Fred's stores rely on government aid, social security, and other means that are typically paid at the first of each month. These governmental payment cycles, coupled with the concurrent distribution of its newspaper-advertising circular, are major factors in concentrating sales earlier in the calendar month. Government Regulation As a publicly traded company, the company is subject to federal securities laws and regulations, including the Securities Act of 1933 and the Securities Exchange Act of 1934, and related rules and regulations promulgated by the Securities and Exchange Commission, as well as the Sarbanes-Oxley Act of 2002 and the Dodd–Frank Wall Street Reform and Consumer Protection Act. Each of the company’s locations must comply with regulations adopted by federal and state agencies regarding licensing, health, sanitation, safety, fire and other regulations. In addition, it must comply with the Fair Labor Standards Act and various state laws governing various matters, such as minimum wage, overtime and other working conditions. The company must also comply with provisions of the Americans with Disabilities Act of 1990, as amended, which requires generally that employers provide reasonable accommodation for employees with disabilities and that its stores be accessible to customers with disabilities. History Fred’s, Inc. was founded in 1947.
fred's inc-class a
(FRED:Consolidated Issue Listed on NASDAQ Global Select )
4300 New Getwell Road
Memphis, TN 38118
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