Family Dollar 2003 Annual Report Download - page 8

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4
Beginning with our very first customer in 1959, Family Dollar established a standard of providing exceptional value and
neighborhood convenience to an underserved yet growing population of low to middle income consumers. Today we serve
nearly eleven million customers each week; a number that is still growing. Last year the number of transactions in existing
stores increased by nearly 2%, and we continued our expansion into new neighborhoods opening 475 new stores. While
our Company originally focused on small town customers, some of our most enthusiastic new customers live in large urban
markets. These markets now represent some of our best growth opportunities.
Family Dollar targets a growing customer base: low and lower middle income consumers. This is the fastest growing sector
of the population. According to ACNielsen surveys, the percent of consumer households who shopped in a dollar store rose
from 47% in 1998 to 62% in 2002. Even without further growth in our targeted customer base, we believe that Family Dollar
could more than double our current store count within the continental United States.
We know that we have to earn the right to serve our customers each day. That is why we focus so
much time and effort on understanding and responding to their needs. For example, we shifted our
merchandise mix in recent years to meet more of the basic everyday needs of our customers during
a more difficult economic environment. Our customers also closely associate value with quality.
We have expanded our assortment of nationally advertised name brand merchandise in recent
years. We have also significantly raised the quality standards of our apparel and domestic merchan-
dise while at the same time hitting the low-end price points our customers need.
Customer focus groups and surveys tell us that we are making good progress. In fact, in the Third
Annual Shopper Report, a nationwide survey of 6,000 households by Chain Store Age magazine
and Cap Gemini Ernst & Young, consumers picked Family Dollar as the overall winner in the
“Discount Stores” category. We are grateful for this recognition and at the same time know that
we still have a long way to grow.
Customers
Family Dollar
We’ve Still Got a
Long Way to Grow