MATTHEWS, N.C. — Family Dollar Stores here said Thursday it is continuing to increase its food assortment, with additional grocery items due in July and an enhanced selection of refrigerated and frozen foods due by mid-September as a result of its partnership with the McLane Co.
The company said it added 150 SKUs of food in February and expects to add 250 more by the end of July, including products like Velveeta cheese, Gerber baby foods, Wise snacks and Gatorade.
Having installed additional coolers at about 700 stores earlier this year, Family Dollar will put them in 700 more stores by August — boosting the number of coolers to 10 per store from five, with 18 coolers per unit at new stores and between 10 and 18 at renovated stores, depending on space, Michael K. Bloom, president and chief operating officer, told investors during a conference call to discuss financial results for the third quarter, which ended May 26.
The company also added the Pepsi line of beverages, he said, noting it is pleased with the sales results, “especially as the cannibalization rate with Coke products has been less than we expected. Customers are very loyal to both Coke and Pepsi, and we are driving trips with both brands.” Family Dollar has also added tobacco products at 1,300 stores — a number that will grow to about 6,000 by the end of the fiscal year, Bloom said.
Net income for the quarter rose 12.1% to $124.5 million, while sales increased 9.6% to $2.4 billion and comparable-store sales were up 5%. Consumables sales rose 12.2% to $1.6 billion during the third quarter. For the year to date net income increased 10.6% to $341.3 million, while sales rose 8.6% to $7 billion; consumables sales were up 12.2% to $4.7 billion.