Family Dollar 2005 Annual Report Download - page 10

The Treasure Hunt Initiative
value
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Our Customers tell us that they need the househo ld
items that we consistently provide at our great,
everyday low prices. But they also tell us how much
they love finding unexpected “ treasures” that add
excitement and “ WOW!” to their shopping trips.
While we continue to provide more value for our
Customers by adding brand name, basic co nsumable
merchandise to our asso rtment, we also are
increasing our selectio n of exciting Treasure Hunt
merchandise. Through opportunistic purchases and
global sourcing, our merchants are creating a steady
stream of unique and compelling values for
Customers. Fun Treasure Hunt merchandise is o ffered
in almo st every department so that a tired mom can
put a smile on her child’s face with a new toy o r her
own with a trendy knickknack to add some spark to
her living roo m. As you can see o n the next page,
even o ur littlest Customers are delighted by our
merchandise, and Brock’s mo m is pleased by the
great value she gets for her dollar.
Treasure Hunt merchandise affo rds us an additio nal
opportunity to impro ve o ur in-store presentation and
merchandise pro fitability. Our store Asso ciates are
excited to o ffer their Customers an ever-changing
selection of seasonal and stylish merchandise at great
values, and o ur logistical specialists are improving
their ability to get the right quantities to the right
stores at the right time so we can maximize sales and
minimize markdo wns. Everyday low pricing continues
to be the foundation of our merchandise and pricing
strategies. Advertising circulars help us tell our
Customers about the great everyday values in bo th
Treasure Hunt and basic co nsumable merchandise.
We began offering our Treasure Hunt merchandise
pro gram to our Customers during the 2004 holiday
seaso n. Our Customers responded favorably, and our
holiday sales were better than the eco nomic
conditions wo uld have predicted. This year, we will
build upo n last year’s successful holiday seaso n by
pro viding additio nal Treasure Hunt values to keep the
Family Dollar shopping experience surprising, fresh
and compelling.
Our refrigerated coo ler program and Urban
Initiative drive more traffic into o ur stores as
Customers seek great values on basic consumable
merchandise, which generally has low pro fit margins.
We intend to leverage these Customer trips by
offering exciting, unexpected “ treasures” with higher
pro fit margins, in addition to our excellent values
offered on everyday consumables.
While the fo cus of our Treasure Hunt items thus far
has been fashion accessories, giftware and seasonal
merchandise, we intend to expand our Treasure Hunt
assortment into other catego ries to increase the total
value proposition that we offer to our Customers.