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About Fred's, Inc.

Generally serving customers with modest or fixed incomes, Fred's operates more than 620 discount stores and 360 pharmacies in some 15 states, primarily in small- to medium-sized towns in the Southeast. The stores carry more than 12,000 brand-name, off-brand, and private-label products, including pharmaceuticals, household goods, clothing and linens, food and tobacco items, health and beauty aids, and paper and cleaning supplies. The company also provides goods and services to some 15 franchised Fred's stores. Fred's traces its historical roots back to 1947.

Operations

Fred's operates 620 pharmacy and general merchandise stores, including 14 franchised Fred's Pharmacy locations, and three specialty pharmacy-only locations. Its stores offer more than 12,000 frequently purchased items, including nationally recognized brands, proprietary Fred's Pharmacy label products, and a full range of value-priced products.

Geographic Reach

Memphis-based Fred's operates discount general merchandise stores in 15 states, primarily located in the Southeast. More than a third of the stores are in Mississippi and Georgia. The retailer has distribution centers in Memphis, Tennessee, and Dublin, Georgia.

Sales and Marketing

Fred's primarily targets low-, middle-, and fixed-income families in small and midsized towns (some 85% of stores are located in areas with populations of 15,000 or less).

Fred's relies on direct mail, newspaper ads, email, and social media to get its value message out.

Financial Performance

Fred's revenue declined marginally by 1% from $2.2 billion in 2016 to $2.1 billion in 2017. Store traffic decreased 3% during 2017 as comparable store sales decreased 2%. The company also experienced a 3% decrease in general merchandise (non-pharmacy) sales, particularly for tobacco, food, cleaning supplies, beverage, and snacks.

Fred's has also posted net losses the last three years, from 2015 to 2017. Its most recent loss was attributed to professional and legal advisory fees incurred in connection with its proposed acquisition of 865 Rite-Aid stores and impairment charges on assets for closing stores and pharmacies.

Strategy

Historically, Fred's has looked to combine the appeal of a dollar store, drugstore, and mass merchant, all under one relatively-small roof. (Its full-size stores average about 15,000 square feet.) However, amid intense competition in its core general merchandise category, the company is de-emphasizing the mass merchant part of the equation and upping its exposure to pharmacy, a proven driver of customer trips and loyalty for Fred's. Indeed, pharmacy sales accounted for 50% of the chain's total sales in fiscal 2017 (ended January). To grow its pharmacy business, Fred's has been acquiring independent pharmacies and prescription files in markets where it already does business. (It also followed Wal-Mart's lead by lowering prices on generic drugs to $4 a prescription.)

Mergers and Acquisitions

In late 2016 Fred's agreed to acquire 865 Rite Aid stores for $950 million in cash. However, the deal was called off in mid-2017. Fred's is now focused on the faster-growing industry of personal health care and is investing heavily in both retail pharmacy and specialty pharmacy.

Fred's in 2015 bought Reeves-Sain Drug Store, a specialty and retail pharmacy company based in the greater Nashville, Tennessee area, for $66 million. The acquisition included EntrustRx, a specialty pharmacy operation that has a strong regional presence in the Southeast, and a single Reeves-Sain retail pharmacy.

Fred's, Inc.

4300 NEW GETWELL RD
Memphis, TN 38118-6801
Phone: 1 (901) 365-8880

Stats

Employer Type: Publicly Owned
Stock Symbol: FRED
Stock Exchange: , NASDAQ
CEO: Michael K. Bloom
Chairman: Heath B. Freeman
EVP and CFO: Jason A. Jenne
Employees (This Location): 120
Employees (All Locations): 6,572

Major Office Locations

Memphis, TN

Other Locations

Alexandria, AL
Aliceville, AL
Anniston, AL
Ashville, AL
Atmore, AL
Bayou La Batre, AL
Birmingham, AL
Brundidge, AL
Butler, AL
Camden, AL
Centre, AL
Citronelle, AL
Clanton, AL
Columbiana, AL
Dadeville, AL
Decatur, AL
Demopolis, AL
Dothan, AL
East Brewton, AL
Eclectic, AL
Elba, AL
Enterprise, AL
Florence, AL
Georgiana, AL
Guin, AL
Guntersville, AL
Haleyville, AL
Hanceville, AL
Headland, AL
Heflin, AL
Jasper, AL
Lanett, AL
Lincoln, AL
Lineville, AL
Livingston, AL
Luverne, AL
Madison, AL
Marion, AL
Monroeville, AL
Montevallo, AL
Montgomery, AL
Northport, AL
Odenville, AL
Opp, AL
Phenix City, AL
Pinson, AL
Prattville, AL
Rainbow City, AL
Rainsville, AL
Red Bay, AL
Reform, AL
Roanoke, AL
Robertsdale, AL
Rogersville, AL
Russellville, AL
Selma, AL
Sylacauga, AL
Talladega, AL
Tuscumbia, AL
Vernon, AL
Vestavia Hills, AL
Warrior, AL
Augusta, AR
Bald Knob, AR
Beebe, AR
Benton, AR
Brinkley, AR
Bryant, AR
Cabot, AR
Cherokee Village, AR
Clarksville, AR
Conway, AR
Crossett, AR
De Queen, AR
Dumas, AR
El Dorado, AR
Eureka Springs, AR
Forrest City, AR
Greenbrier, AR
Hamburg, AR
Harrisburg, AR
Harrison, AR
Haskell, AR
Heber Springs, AR
Jacksonville, AR
Jonesboro, AR
Little Rock, AR
Magnolia, AR
Malvern, AR
Manila, AR
Marianna, AR
Marion, AR
Marked Tree, AR
Marshall, AR
Melbourne, AR
Mena, AR
Monticello, AR
Morrilton, AR
Mountain Home, AR
Nashville, AR
Osceola, AR
Paragould, AR
Pea Ridge, AR
Piggott, AR
Pine Bluff, AR
Prescott, AR
Russellville, AR
Searcy, AR
Sheridan, AR
Stamps, AR
Star City, AR
Van Buren, AR
Vilonia, AR
Warren, AR
West Helena, AR
West Memphis, AR
White Hall, AR
Yellville, AR
Bonifay, FL
Green Cove Springs, FL
Live Oak, FL
Milton, FL
Monticello, FL
Adairsville, GA
Adel, GA
Albany, GA
Alma, GA
Ashburn, GA
Augusta, GA
Bainbridge, GA
Barnesville, GA
Baxley, GA
Blackshear, GA
Blakely, GA
Brunswick, GA
Byron, GA
Cairo, GA
Calhoun, GA
Cedartown, GA
Chatsworth, GA
Chickamauga, GA
Clarkesville, GA
Claxton, GA
Cleveland, GA
Cochran, GA
Colbert, GA
Commerce, GA
Conyers, GA
Cordele, GA
Covington, GA
Cuthbert, GA
Dalton, GA
Darien, GA
Dawson, GA
Dillard, GA
Donalsonville, GA
Douglas, GA
Dublin, GA
Eastman, GA
Fort Valley, GA
Glennville, GA
Gray, GA
Greensboro, GA
Griffin, GA
Hawkinsville, GA
Helena, GA
Hephzibah, GA
Hiawassee, GA
Hinesville, GA
Hogansville, GA
Homerville, GA
Jasper, GA
Jesup, GA
Kingsland, GA
La Fayette, GA
Lakeland, GA
Lavonia, GA
Lexington, GA
Louisville, GA
Macon, GA
Mcdonough, GA
Metter, GA
Millen, GA
Mount Vernon, GA
Nashville, GA
Quitman, GA
Reidsville, GA
Rincon, GA
Ringgold, GA
Riverdale, GA
Rome, GA
Rossville, GA
Royston, GA
Social Circle, GA
Swainsboro, GA
Sylvania, GA
Sylvester, GA
Temple, GA
Thomaston, GA
Thomasville, GA
Tifton, GA
Trenton, GA
Washington, GA
Winder, GA
Wrens, GA
Zebulon, GA
Benton, IL
Breese, IL
Eldorado, IL
Mc Leansboro, IL
Oakland City, IN
Burkesville, KY
Cadiz, KY
Hartford, KY
Hopkinsville, KY
Lewisport, KY
Murray, KY
Princeton, KY
Russell Springs, KY
Arcadia, LA
Bastrop, LA
Baton Rouge, LA
Benton, LA
Bossier City, LA
Bunkie, LA
Carencro, LA
Church Point, LA
Columbia, LA
Cypress, LA
Delhi, LA
Eunice, LA
Ferriday, LA
Franklinton, LA
Gonzales, LA
Hammond, LA
Haughton, LA
Haynesville, LA
Homer, LA
Jennings, LA
Jonesboro, LA
Jonesville, LA
Kinder, LA
Lafayette, LA
Lake Charles, LA
Mansfield, LA
Many, LA
Monroe, LA
Pineville, LA
Ringgold, LA
Ruston, LA
Saint Francisville, LA
Saint Joseph, LA
Saint Martinville, LA
Shreveport, LA
Sterlington, LA
Tallulah, LA
Westlake, LA
West Monroe, LA
Winnfield, LA
Cape Girardeau, MO
East Prairie, MO
Hayti, MO
Poplar Bluff, MO
Portageville, MO
Aberdeen, MS
Amory, MS
Baldwyn, MS
Batesville, MS
Belzoni, MS
Booneville, MS
Brandon, MS
Brookhaven, MS
Bruce, MS
Byhalia, MS
Canton, MS
Carthage, MS
Centreville, MS
Charleston, MS
Clarksdale, MS
Cleveland, MS
Clinton, MS
Coldwater, MS
Collins, MS
Columbia, MS
Columbus, MS
Corinth, MS
Crystal Springs, MS
De Kalb, MS
Durant, MS
Eupora, MS
Flora, MS
Florence, MS
Forest, MS
Fulton, MS
Gautier, MS
Greenville, MS
Greenwood, MS
Grenada, MS
Hattiesburg, MS
Hazlehurst, MS
Hernando, MS
Holly Springs, MS
Horn Lake, MS
Houston, MS
Indianola, MS
Iuka, MS
Jackson, MS
Kosciusko, MS
Laurel, MS
Leland, MS
Lexington, MS
Louisville, MS
Magee, MS
Mantachie, MS
Marks, MS
Mc Comb, MS
Mendenhall, MS
Meridian, MS
Monticello, MS
Morton, MS
Moss Point, MS
Natchez, MS
Nettleton, MS
New Albany, MS
Newton, MS
Ocean Springs, MS
Okolona, MS
Olive Branch, MS
Oxford, MS
Pascagoula, MS
Pearl, MS
Pelahatchie, MS
Philadelphia, MS
Pontotoc, MS
Prentiss, MS
Purvis, MS
Quitman, MS
Richton, MS
Ripley, MS
Rolling Fork, MS
Saltillo, MS
Sardis, MS
Senatobia, MS
Southaven, MS
Starkville, MS
Sumrall, MS
Taylorsville, MS
Terry, MS
Tunica, MS
Tupelo, MS
Tylertown, MS
Union, MS
Vancleave, MS
Vardaman, MS
Vicksburg, MS
Water Valley, MS
West Point, MS
Wiggins, MS
Winona, MS
Woodville, MS
Bryson City, NC
Burnsville, NC
Canton, NC
Carthage, NC
Hickory, NC
Lenoir, NC
Marion, NC
Rutherfordton, NC
Salisbury, NC
Shelby, NC
Spruce Pine, NC
Statesville, NC
Idabel, OK
Wagoner, OK
Abbeville, SC
Anderson, SC
Andrews, SC
Bamberg, SC
Belton, SC
Bishopville, SC
Camden, SC
Chesnee, SC
Chester, SC
Chesterfield, SC
Clinton, SC
Clover, SC
Edgefield, SC
Gaston, SC
Greenwood, SC
Honea Path, SC
Iva, SC
Johnsonville, SC
Kingstree, SC
Ladson, SC
Liberty, SC
Lyman, SC
Newberry, SC
North Augusta, SC
Pelzer, SC
Pickens, SC
Piedmont, SC
Roebuck, SC
Saluda, SC
Sumter, SC
Varnville, SC
Ware Shoals, SC
Alamo, TN
Arlington, TN
Bartlett, TN
Benton, TN
Bolivar, TN
Brownsville, TN
Camden, TN
Centerville, TN
Chattanooga, TN
Clarksville, TN
Collierville, TN
Columbia, TN
Counce, TN
Dayton, TN
Decherd, TN
Dover, TN
Dresden, TN
Dyersburg, TN
Erin, TN
Etowah, TN
Fairview, TN
Gallatin, TN
Greenfield, TN
Hartsville, TN
Henderson, TN
Humboldt, TN
Huntingdon, TN
Jackson, TN
Jasper, TN
Lafayette, TN
Lebanon, TN
Lexington, TN
Linden, TN
Livingston, TN
Loretto, TN
Maynardville, TN
Mc Kenzie, TN
Mcminnville, TN
Medina, TN
Memphis, TN
Middleton, TN
Milan, TN
Millington, TN
Monteagle, TN
Mountain City, TN
Mount Pleasant, TN
Murfreesboro, TN
Newport, TN
Nolensville, TN
Paris, TN
Pikeville, TN
Portland, TN
Pulaski, TN
Ripley, TN
Savannah, TN
Selmer, TN
Somerville, TN
Sparta, TN
Spring Hill, TN
Sweetwater, TN
Tiptonville, TN
Trenton, TN
Union City, TN
Waynesboro, TN
White Bluff, TN
Woodbury, TN
Bridgeport, TX
Daingerfield, TX
Dallas, TX
Gladewater, TX
Hallsville, TX
Hawkins, TX
Jacksboro, TX
Kilgore, TX
Lindale, TX
Mc Gregor, TX
Pittsburg, TX
Tyler, TX
Whitehouse, TX
White Oak, TX