Family Dollar Essay

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Family Dollar, Inc. In accordance to the article, What You Can Learn From Shareholder Letters, written by Eric R. Heyman, the Family Dollar shareholder letter is written concisely and provides shareholders with an overview summary about fiscal year 2013 and the direction the company is moving towards. It gives the shareholders and potential investors an insight into what the company believes are pivotal strategies designed to remain competitive in the retail industry- highly competitive. Within, this shareholders letter, Howard R. Levin, Family Dollar Chairman/CEO, discussed business performance, sustainable growth and profitability, achievements and challenges, target customers, new business partnerships, future goals, and the company’s …show more content…

Family Dollar provided the history of the company which proven its longevity in the industry; for example, in “1959 Leon Levin founded Family Dollar in Charlotte, North Carolina (www.sec.gov)”. Then in “1969, the company incorporated in Delaware (www.sec.gov)” and by the following year the entity became a “publicly traded company on the New York Stock Exchange under the symbol “FDO” (www.sec.gov)”. Currently, the company operates “7,916 stores in 46 states with square footage ranging between 7,500 and 9,500 (www.sec.gov)”. Anticipating the needs of customers that live extremely busy lives, the stores are open seven days a week from 8 a.m. to 9 p.m. and accept varies forms of payment such as cash, credit/debit cards, checks, and food stamps. Store locations are vital to Family Dollar’s growth and profitability. These locations are selected to offer convenience. Many of these stores are within a three to five mile radius. The demographic breakdown for it stores are that “two percent are located in downtown buildings, 24% of the stores are located in large urban markets, 20% are located in small urban markets or suburban areas, 58% the stores are located in strip malls, and 40% are in freestanding buildings …show more content…

It sells many name brand products manufactured by “Procter & Gamble, Coca-Cola, Clorox, Nestle, Kimberly Clark, Unilever, Colgate, Palmolive, Georgia Pacific, Frito-Lay, Inc., and PepsiCo at a lesser cost than its competitors-Dollar Tree, Dollar General, Wal-Mart (www.sec.gov)”. One of the company’s objectives is to provide the customer with quality products priced less than higher priced competitor stores. Majority of the offered products are economically priced $10.00 or less. Although Family Dollar has a board customer base, research shows that most of its customers’ range of income is between lower to middle income and fixed

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