Family Dollar Stores, the US discount retailer, said it will increase private-label penetration over the next two to three years.
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Howard Levine, chairman and CEO, told analysts today (7 October) that its private-label division represents a “billion dollar business” and that it has identified opportunities to increase penetration.
“We’ve already managed to update the packaging of our products and next year you will see a growing appearance in our stores of a more robust private label offering,” Levine said. “We look at it as an opportunity to grow our top line and as a margin opportunity.”
The company this morning posted a “strong” annual performance with an increase in net income.
For the year ended 30 August, net income increased 25% to reach US$291.3m. Sales reached $7.4bn, or 6% above sales for fiscal 2008.
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By GlobalDataDuring fiscal 2009, the company opened 180 new stores and closed 96 stores.
Levine told analyst that the group was seeing a “ramp up” in submissions and improved results for new stores.
“From distribution we’re in good shape so it’s the pacing of those openings that ensure strong execution. We’ve opened up over 500 stores. We’re not talking about going to that level immediately, but a moderate ramp up over the next few years.”
For fiscal 2010, Levine said the company expects net sales will increase 5% to 7% compared with fiscal 2009, while earnings per share is expected to be between $2.15 and $2.35 in fiscal 2010.
