Family DollarImplementing a Retail Strategy

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Agenda

• About Family Dollar• Impact of Economy on Customers• Attracting & Retaining Customers• Compelling Place to Work

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Family Dollar Today

• $7.0 Billion in sales• 6600 stores in 44 states• Neighborhood stores• Variety of consumable and

discretionary merchandise• Average transaction around $10

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Family Dollar Our Mission:

To be a compelling place to shop, work and invest.

Our Vision:To be the best small-format

convenience and value retailer serving the needs of families in our

neighborhoods.

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Agenda

• About Family Dollar• Impact of Economy on

Customers• Attracting & Retaining Customers• Compelling Place to Work

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Impact of Economy on Customers• Combining errands and shopping trips• Doing more things at home• Reducing spending, especially on

discretionary items• Increased participation in EBT benefits• Using more coupons and discounts• “Trading down” to less expensive items

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Agenda

• About Family Dollar• Impact of Economy on Customers• Attracting & Retaining

Customers• Compelling Place to Work

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Attracting & Retaining Customers

• Increase Relevancy to the Customer

• Brand Identity/Awareness

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Increase Relevancy to Customer

• Expanded marketing• Convenience factor• In-store experience• Expanded basics• Credit and EBT usage

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Percent EBT Change by State

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Improved Technology

• Speedier check out• Acceptance of credit cards• Acceptance of EBT• Debit cash back option

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Concept Renewal

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Exterior Health & Beauty Aids

Automotive Food & Candy

Housewares Paper

Hardware & Paint Pets

Home Cleaning Aids Laundry & Storage

Domestics Picture Frames

Men, Boys, Girls, Infants Apparel & Shoes Ladies & Plus Sizes, Socks, Lingerie

Entire Store Checkout

Home Cleaning Aids

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Brand Identity/Awareness

• New branding initiatives should typically follow, not lead, improvements in shopping experience.

• Successful re-branding requires equal emphasis on internal communications/cultural change as on external communications.

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Brand Identity/Awareness

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Agenda

• About Family Dollar• Impact of Economy on Customers• Attracting & Retaining Customers• Compelling Place to Work

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Advantages of a Strong Company Culture

• Consistently outperforms competition

• Delivers strong results• Attracts and retains talent• Competitive advantage

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Compelling Place to Work

• Culture Initiative• Team Member Retention• Career Paths• Leadership

Development

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Stock Price