MEMPHIS, Tenn.—Discount retailer Fred's Inc. said Thursday that April same-store sales rose 4.3 percent, excluding the impact of 67 stores that have been or will be closed as part of the company's previously announced strategic plan.
Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.
Analysts polled by Thomson Financial, on average, estimated a 3.7 percent increase in same-store sales.
Total sales for the month rose 8 percent to $137.5 million from $126.8 million in the same period last year.
"This performance underscored an active month in our stores led by our consumables departments, with their increased volume offsetting the margin pressures experienced as customers limited their spending on discretionary items," said Michael J. Hayes, chief executive, in a statement.
The company said it has accelerated its program of closing 75 underperforming stores and 22 underperforming pharmacies during the year. To date, Fred's has closed 17 stores and 21 pharmacies. Fred's said it began the store closing process at 50 of the remaining underperforming stores in April.
The effect of going-out-of-business sales at these stores amounted to $2.8 million, or 2 percent of the total sales increase in April, the company said.
Total sales for the first quarter increased 5 percent to $464.3 million. Year-to-date, same-store sales increased 2.1 percent. Excluding stores that have been or will be closed, same-store sales for the quarter rose 2.5 percent.
