Family Dollar Stores generate $10.5 billion in fiscal 2014, up 0.9%
MATTHEWS, N.C. — Family Dollar Stores on Wednesday reported a 0.9% increase in total net sales for fiscal 2014 to $10.5 billion for the year ended Aug. 30.
Consistent with the National Retail Federation Calendar, the company’s fiscal 2013 included 53 weeks as compared to 52 weeks in fiscal 2014. The company estimates this extra week contributed approximately $189 million in sales. Excluding this extra week, total net sales for fiscal 2014 increased 2.8% as compared to fiscal 2013. Comparable store sales in fiscal 2014 decreased 2.1% as a result of fewer customer transactions, partially offset by an increase in the average customer transaction value. Sales were strongest in the consumables category, driven primarily by strong growth in refrigerated/frozen food and tobacco.
Total net sales for the fourth quarter ended August 30 increased 4.5% to $2.6 billion. Comparable store sales for the 13-week period increased 0.3% as a result of an increase in the average customer transaction value, partially offset by fewer customer transactions. Sales in the fourth quarter of fiscal 2014 were strongest in the consumables and seasonal and electronics categories.
“Although our fourth quarter results continue to reflect the difficult competitive environment, as well as the financial challenges facing our customers, we are continuing to execute our previously announced restructuring initiatives to improve our performance,” stated Howard Levine, Familyh Dollar chairman and CEO. “While we are still in the early stages of our turnaround plan, we believe that the strategic actions taken in fiscal 2014 will position the Company for better sales and earnings performance in fiscal 2015. We anticipate that the first quarter will be our most challenging quarter of fiscal 2015, but we expect momentum will build as we move through the rest of the year.”
Over the course of the fourth quarter, Family Dollar implemented a series of restructuring initiatives, including the closing of 375 underperforming stores. As a result, the company incurred $10.4 million in inventory write-downs in an effort to sell through merchandise at stores scheduled to close.
During fiscal 2014, the company opened 526 new stores, closed 400 stores, and renovated, relocated or expanded 738 stores. The company expects to open approximately 375 new stores, close approximately 40 stores, and renovate, relocate or expand 775 stores in fiscal 2015.