Turnaround efforts continue to generate 'positive momentum,' Fred's says

MEMPHIS, Tenn. — Fred’s on Friday posted a sales decline of 4.2% to $153 million for the four-week fiscal month ended Aug. 26. The decrease in total sales is related primarily to the closure of 39 underperforming stores in the first quarter, the company reported.



Total comparable store sales for the month saw a slight decrease of 0.5%, compared with a 3% decrease in comparable sales in the prior year period. Comparable store sales for August were negatively impacted by the continued increase in generic dispensing rate as well as a 0.5% impact from the sale of low productive discontinued inventory versus August of last year.



“Total comparable store sales for August show continued improvement from trends over the past 12 months, and overall pharmacy comps remained positive in August," stated Michael Bloom, CEO Fred's. "Front store showed positive comp growth in our general merchandise, health care and beauty categories, which were offset by market headwinds in the core consumables categories. We are encouraged by the momentum resulting from the turnaround efforts that are under way.”