According to Family Dollar CEO Howard R. Levine speaking in the January 6th earnings call the Matthews, NC based dollar retailer plans to add 100 new Private Brand food products in the first quarter as a part of 300 new food items to be introduced in stores.
“Food continues to be a significant trip driver. Through our renovation initiative, we have significantly expanded our assortment of food. Last spring, we incorporated a number of these new items in existing stores that had not been renovated, and our customers have responded well,” Levine told analysts. “This quarter, we will add 300 new food items in all stores, including about 100 new private brand items. These additions will position us to capture more trips and reinforce our value proposition.”
Family Dollar will also launch the newest addition to its Private Brand Portfolio, the new health and beauty brand “Family Wellness” will continue to build on its established naming scheme: Family Gourmet, Family Chef, Family Dollar and now Family Wellness. “We will launch our Family Wellness brand to provide our customers with quality over-the-counter merchandise at great values,” Levine told analysts.
“Private brands and food will be an important part of our assortment, and I would add in the HBA areas, the new name, Family Wellness, you’ll begin to see in our stores in the very near future,” Levine said. In response to a question on Private Brand penetration rates, he outlined, “at the end of last year, our total private brand penetration was about 25%. On consumables, it was about 16%. In the first quarter, we continued to see great growth in Private Brands. I think something like 16% or 17% growth in consumable private brands in the first quarter. So that trajectory is continuing. As I think we’ve said on past calls, our goal is – our near-term goal is to get penetration of consumable private brands up to 20%, and we are certainly well on our way.”