Family Dollar 2013 Annual Report Download - page 12

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We offer a focused assortment of merchandise in a number of core categories, such as health and beauty
aids, packaged food and refrigerated products, tobacco products, home cleaning supplies, housewares, stationery,
seasonal goods, apparel, and home fashions. Reflecting trends in customer demand over the past three fiscal
years, we have expanded our assortment of consumable merchandise in our stores. We manage the business on
the basis of one operating segment and therefore, have only one reportable segment. The following table
summarizes the percentage of net sales attributable to each product category over the last three fiscal years.
Product Category 2013 2012 2011
Consumables .................................................... 72.4% 69.0% 66.5%
Home Products ................................................... 10.1% 11.4% 12.7%
Apparel and Accessories ........................................... 7.6% 8.8% 10.0%
Seasonal and Electronics ........................................... 9.9% 10.8% 10.8%
The following table describes our product categories in more detail.
Consumables .............. Household chemicals
Paper products
Food
Health and beauty aids
Hardware and automotive supplies
Pet food and supplies
Tobacco
Home Products ............ Domestics, including blankets, sheets and towels
Housewares
Giftware
Home décor
Apparel and Accessories .... Men’s clothing
Women’s clothing
Boys’ and girls’ clothing
Infants’ clothing
Shoes
Fashion accessories
Seasonal and Electronics .... Toys
Stationery and school supplies
Seasonal goods
Personal electronics, including pre-paid cellular phones and services
We sell high-quality national brands from leading manufacturers including Procter & Gamble, Coca-Cola,
Clorox, Nestle, Kimberly Clark, Unilever, Colgate Palmolive, Georgia Pacific, Frito-Lay, Inc., and PepsiCo,
which are typically sold at higher prices elsewhere. During fiscal 2013, nationally advertised brand name
merchandise accounted for approximately 60% of sales. Merchandise sold under our private brands program,
across all merchandise categories, accounted for approximately 26% of sales. Merchandise sold under other
brands and labels, or which was unlabeled, accounted for the balance of sales. During fiscal 2013, closeout
merchandise accounted for approximately 2% of sales.
We purchase merchandise from a wide variety of suppliers and generally have not experienced difficulty in
obtaining adequate quantities of merchandise. In fiscal 2013, no single supplier accounted for more than 9% of
the merchandise we sold. We purchased approximately 13% of our merchandise (at cost) through our
relationship with McLane, which distributes merchandise from multiple manufacturers.
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