Family Dollar 2011 Annual Report Download - page 14

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Additionally, in fiscal 2011, we began construction on our 10th distribution center in Ashley, Indiana. We
plan to begin construction on our 11th distribution center in fiscal 2012.
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 27, 2011, we had approximately 31,000 full-time employees and approximately 21,000 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 (“NYSE”) rules, on February 17, 2011, we filed the annual
certification by our Chief Executive Officer that, as of the date of the certification, Family Dollar was in
compliance with the NYSE listing standards. For the fiscal year ended August 27, 2011, our Chief Executive
Officer and our Chief Financial Officer executed the certifications required by Section 302 of the Sarbanes-Oxley
Act of 2002, which are filed as exhibits to this Report.
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