Fred's February sales decline, but company pleased with progress
MEMPHIS, Tenn. — Fred’s Pharmacy reported total sales for its fiscal month of February, which ended Feb. 25, decreased 3.5% on a year-over-year basis to $165.4 million. Total comparable store sales declined 4%, compared with an 0.8% increase during the same time period in 2016.
Fred’s CEO Michael K. Bloom stressed the company is pleased with progress it is making under its strategic plan though.
“Despite the tax refund delay impacting a significant percentage of our customer base and our front-of -store sales, we are pleased with the progress we are making against our strategic plan, demonstrated by our continued improvement in retail and specialty pharmacy,” said Bloom. “This is an affirmation that our healthcare strategy is working. Notably, comparable store sales in our overall Pharmacy business were strong in the month, driven by positive adjusted prescription comparisons.”
He continued: “Progress against our strategic plan in the front of store was offset in February by the significant delay of individual tax refunds, which are down approximately 13% year-over-year. However, comparable sales in our front of store improved in the last week of February as individual refunds were received by customers. Looking ahead to March and the remainder of the first quarter, we expect customer spending will continue to increase as tax refunds are received.
“We continue to execute on our strategic initiatives aimed at providing healthcare services and value merchandise in the markets we serve. We remain confident in our long-term transformational strategy to capitalize on the opportunity to grow sales and enhance value for our shareholders,” Bloom continued.
Fred's Pharmacy and its subsidiaries operate 643 discount general merchandise stores and three specialty pharmacy-only locations in 15 states in the southeastern United States. Included in the store count are 14 franchised locations. Also, there are 354 full service pharmacy departments located within Fred's stores, including one franchised location.