Family Dollar Expands, Protects Its Assortment

By Matt Pillar, chief editor

As $10.4 billion Family Dollar added more national brands to its merchandise mix, protecting its inventory investment became a high priority.

When Family Dollar embarked on an initiative to introduce more major national brands to its product assortment five years ago, the company accurately predicted the gross margin impact the strategy would generate. Fourth quarter 2013 earnings jumped 28% year-over-year for the 7,900-store chain, bolstered not by more sales but better margins on its expanded assortment of consumables.

What it didn’t expect was the rise in external shrink the company experienced—a combination of shoplifting and organized retail crime. Julie Giblin, VP of loss prevention at Family Dollar, says a combination of technology, interdepartmental cooperation, and team member training has been key to reversal of the trend.