Fred’s changes will spotlight home

Key items, sharper promotions part of strategy

 

Memphis, Tenn. – After a long push on consumables and pharmacy to drive traffic, Fred’s will now overhaul the layout to boost higher-margin goods by creating six “convenience centers” largely focused on home categories.

The in-store centers will focus on need-it-now merchandise items in six broad categories:

  • Seasonal
  • Bedding
  • Bath
  • Kitchen
  • Pet
  • Home improvement (including window)

Bruce Efird, ceo, said during the company’s quarterly conference call this morning that research found while Fred’s customers consider the store a destination for consumables and pharmacy, they view the rest of the assortment as mere “stuff.” The new layout seeks to move shoppers into remerchandised, home-focused shop-in-shops.

The format will begin rolling out in June and will be substantially completed by the end of the fourth quarter.

Key components of the strategy:

  • A new front end that emphasizes power displays, palettes and faster checkout;
  • Competitive everyday pricing and much more aggressive promotions on fewer items;
  • New signage and displays calling out the convenience centers;
  • Reducing assortments in electrics, furniture and apparel;
  • Boosting assortments in home improvement, seasonal, pet and consumables;
  • An overhaul of circular content, starting this month, with 20% devoted to key items from the six convenience centers;
  • In-store distribution of 1 million circulars each week. Store associates will personally hand circulars to shoppers and encourage them to visit the convenience centers, a strategy Efird referred to as “the secret sauce” in the plan.

For the first quarter, ended May 3, net income tumbled 46% to $6.1 million, or 17 cents per share. Sales slipped 0.6% to $498.3 million, with comps down 1.9% on top of a 1.3% decline in the year-ago quarter.

Home Textiles Today Staff | News & Commentary

Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Research Store

Featured Video

Subscribe to
Home Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT November 2017 cover

See the November 2017 issue of Home Textiles Today. In this issue, we look at Complex Colors, Complex Times--Trend forecasters and interior designers weigh in on 2018 palettes and motifs.  Other articles include: Data: Exclusive HTT soft window research; Innovation: Material Changes conference preview; Country report: India invests in the future and Fabrics: Showtime preview.  See details!