Fred’s Super Dollar

Average Property & Lease Terms

Price                             $1.8m

Lease Type                  NN

Term                             12 Years

Ownership                   Fee simple

Guarantor                    Corporate – no franchises

Building Size               16,000 sf

Lot Size                        2 acres

Increases                     Flat

Options                       3 five year

Corporate Overview            

NYSE: FRED              

S&P Rated: Not Rated  (understanding credit ratings)

Current Annual Revenue: $1.939 billion

Current Annual Net Income: $26.015 million

Number of Locations: +725

News               Website: www.fredsinc.com

Fred’s Super Dollar is a discount general merchandise retailer operating mainly across the southeastern states. It opened with one store in 1947 in Coldwater, Mississippi and today operates over 700 stores (including 24 franchised locations) – and is headquartered in Memphis, Tennessee. Fred’s primarily competes against national, deep-discount chains Dollar General, Family Dollar, and Dollar Tree. In the past few years, it and other deep-discount retailers have taken some market share away from major discount chains like Walmart, as well. Most locations are in towns with populations of 15,000 or less.

Fred’s has attempted to differentiate itself from its rivals by:

• Operating a full-line pharmacy in approximately 1/3 (294) of its stores
• Operating a seasonal lawn and garden department
• Selling tobacco products

Fred’s stores stock more than 12,000 items including nationally recognized brand name products, proprietary Fred’s label products, and lower-priced, off-brand products. The company has two distribution centers, one in Memphis, Tennessee, and Dublin, Georgia.