Family Dollar to Ramp Up Store Brands

February 16, 2010

Family Dollar Stores has its sights set on dramatically increasing its store brand sales, especially on consumable products, which now represent about 10 percent of sales.

During an investor presentation, CFO Kenneth Smith said the goal is to increase consumable store brand sales to between 15 to 20 percent, which would increase overall store brand sales from the current 19 percent to 25 percent, according to a Supermarket News report.

Another initiative to grow earnings is to serve the small but growing segment of shoppers with annual incomes above $40,000, which the Matthews, N.C. –based chain is increasingly attracting.

"It’s really exciting for us to serve that core lower-income customer, as well as a slightly higher income customer," Smith said. "We understand the nuances between the two and the different shopping patterns and serve those customers."

In a separate news report, the retail also announced it plans to extend its business hours by the end of February.

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Keywords: business, companies, dollar, family dollar, food and beverage, industry, markets, private label trends, store brand trends

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