Worth a look: A Fortune magazine profile of N.C.-based Family Dollar, which is thriving in the recession along with several "dollar" stores.
Family Dollar, founded by Leon Levine in 1959, reported a 6.4% jump in second-quarter sales at stores open more than a year. It's one of the top performers among Fortune 500 companies, with shares are up 28% so far this year after rising 36% in 2008.
The philosophy behind the success? Says Fortune:
While other retailers have courted a more upscale clientele by adding fine jewelry and designer clothes, Family Dollar has stayed true to its roots. A typical shopper earns just $35,000 a year. Says (CEO Howard) Levine: "We want our customers to know they can afford anything in our stores."
How does Family Dollar do it? By selling a greater amount of second- and third-tier
brands, which cost less and possess greater margins than do first-tier brands - more Gain laundry detergent than Tide, for instance - and by cherry-picking inexpensive real estate in unglamorous locations. At $2 a square foot, Family Dollar's occupancy costs are a tenth of what a typical supermarket or drugstore pays, and 1/50th the cost of a mainline department store, estimates Burt Flickinger III, managing director of the Strategic Resource Group.
The story doesn't mention, but you might remember, that Leon Levine and his wife, Sandra, donated $1 million in December for the Critical Need Response Fund, an emergency fund based in Mecklenburg County to help thousands of the homeless, hungry and jobless here through the cold months.
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8 comments:
i have a friend who started working there a couple months ago...at corporate...who's pay was decreased 6% less than a month after her start date...due to the economic situation of the company...and they were gonna start a week long furlough for corporate employees too...wonder if that's all changed due to this recent profit
Five ellipses. Zero used correctly. That's impressive!
Good job Adam West, You've just been nominated to the Grammaticon Club! Now come on up front and collect...your prize!
I'm a corporate employee who has yet to hear of a pay decrease.
I know that times are bad and everyone is having to take pay cuts or fewer hours. But any company who will donate money for the less fortunate will get my business. Has anyone seen Ken Lewis donate ANY of his millions to anything in the Charlotte area. The Levines' are well known for their philanthropy in this community. Parade Magazine this past Sunday listed the salaries in their annual edition and according to their reports, Ken Lewis pulled down $10 million dollars last year. Where was his community donations? Please support Family Dollar and the Levine's so that Charlotte can continue to benefit from their donations.
the comment about corporate starting a weeklong furlough is absolutely not correct
Leon Levine retired and divested himself of all Family Dollar stock over five years ago. Charitable donations from him or his foundation should not be confused with anything Family Dollar or Howard Levine does or does not do.
Flickinger is an over-paid, Upper West Side elitist "consultant" who has never had to shop at Family Dollar. He just "visits" Family Dollar and snaps a few photos when he needs to earn more of his over-the-top NYC consultant fees or wants to "feel the pain" of the poor. huddled masses.
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