Fred’s, a Memphis-based discount chain, will close an additional 49 underperforming stores in its third round of closings as it continues to evaluate its store portfolio. The pharmacies inside the closed stores will remain open, according to a company statement.
The retailer has closed 312 stores since April, or 56% of its store base. The latest liquidations are expected to conclude June 29, leaving 244 operating locations remaining. SB360 Capital Partners is currently managing the store closures and liquidation.
The announcement came the same week Fred’s reported that its Q1 sales decreased by 5.2%, from $336.4 million last year to $319 million this year. Additionally, its comparable store sales fell 8.5% and gross profit dropped 16.2% during the quarter, from $89.1 million last year to $74.6 million this year.
The most recent closures will affect eight states: Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, South Carolina and Tennessee.