Family Dollar 2010 Annual Report Download - page 12

To minimize transportation costs and maximize our efficiency, we rely on a web-enabled transportation
management system to track shipments, to maximize trailer loads and routes, and to secure low rates from our
trucking partners. To maximize the productivity of our distribution centers, we utilize voice-recognition software,
radio-frequency technology and high-speed sortation systems in each of our nine distribution centers.
To manage our extensive library of store leases, we utilize a lease management system that contains the key
terms and conditions abstracted from our active store lease contracts. This electronic repository provides us with
better visibility to key property management issues such as property taxes, common area maintenance fees and
renewal options.
Our centralized procurement organization utilizes an on-line procurement system for many
non-merchandise purchases. This system allows us to centralize these purchases, enabling us to leverage our
buying power and control costs.
We utilize an online hiring system designed to provide consistent pre-employment assessments and
interviews for prospective team members in all of our stores. To improve our customer service and drive
productivity, we also utilize an online training system in our stores.
Competition
Our industry is highly competitive. The principal competitive factors include store locations, convenience,
price and quality of merchandise, in-stock consistency, merchandise assortment and presentation, and customer
service. We compete for sales and store locations in varying degrees with international, national, regional and
local retailing establishments, including discount stores, department stores, variety stores, dollar stores, discount
clothing stores, drug stores, grocery stores, convenience stores, outlet stores, warehouse stores and other
stores. Many other large U.S. retailers have stores in areas in which we operate. We believe that the relatively
small size of our stores permits us to operate new stores in most areas, including rural areas and large urban
markets, in locations convenient to our target customer.
Seasonality
Our sales are slightly seasonal. Historically, sales have been highest in the second fiscal quarter (December,
January, and February) in connection with the holiday season, representing approximately 27% of total annual
sales over the last five fiscal years. Our quarterly results also can be impacted by the timing of certain holidays.
We purchase significant amounts of seasonal inventory during the first quarter in anticipation of the holiday
season.
Trademarks
We have registered with the U.S. Patent and Trademark Office the names Family Dollar®and Family Dollar
Stores®as service marks, and also have registered, or have filed registration applications for, other names and
designs as trademarks for certain merchandise sold in our stores, such as Family Gourmet™, Family Pet™, and
Kidgets®.
Employees
As of August 28, 2010, we had approximately 30,000 full-time employees and approximately 20,000 part-
time employees. None of our employees are covered by collective bargaining agreements. We consider our
employee relations generally to be good.
NYSE Certification
In accordance with New York Stock Exchange (the “NYSE”) rules, on February 23, 2010, we filed the
annual certification by our Chief Executive Officer that, as of the date of the certification, Family Dollar was in
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