Retail News Breaks Archives
COO Bloom leaves Family Dollar Stores
January 9th, 2014
MATTHEWS, N.C. – Michael Bloom, president and chief operating officer of Family Dollar Stores Inc., has left the company.
The deep discount chain announced Bloom’s departure Thursday when reporting its 2014 first quarter results. The company said a search will be conducted for his replacement.
“Since joining Family Dollar in 2011, Mike has been a valued part of our team,” said chairman and chief executive officer Howard Levine in a statement. “We appreciate his contributions to the company and wish him all the best in his future endeavors.”
Bloom joined Family Dollar as president and COO in September 2011, when the company announced that his predecessor, R. James Kelly, was retiring. Bloom previously was executive vice president of merchandising, supply chain, marketing and advertising at CVS Caremark Corp., where he had a 20-year career.
Also on Thursday, Family Dollar said Jason Reiser has been promoted to the position of executive vice president and chief merchandising officer. He reports to Levine.
“Continuing to refine our assortment to meet the needs of our customer is critical to being a compelling place to shop,” Levine stated. “Jason’s proven leadership, merchandising experience and deep understanding of our customer position him well to ensure that we grow both customer trips and market share.”
In his new role Reiser is responsible for Family Dollar’s merchandising, global sourcing, marketing, replenishment and financial planning.
He joined Family Dollar in July 2013 as senior vice president of merchandising with responsibility for health, beauty, personal care and household products. Last October he was promoted to lead merchandising officer with responsibility for all merchandising functions.
Before coming to Family Dollar, Reiser worked for Walmart for 17 years, serving most recently as vice president of merchandising, health and family care for Sam’s Club.
For the first quarter, Family Dollar's sales rose 3.2% to $2.5 billion but net income slipped 2.8% to $78 million, or 68 cents per diluted share. Operating profit fell 5.2% to $120.3 million.
Comparable-store sales, which faced comparisons with strong year-ago increases, declined 2.9%, reflecting as well lower customer traffic and a slight drop in the average transaction. Gross margin increased 14 basis points to 34.28%, but selling, general and administrative expenses grew 56 basis points to 29.46%.
“Today we reported sales and earnings for the first quarter of fiscal 2014 that were in line with our previously provided guidance,” said Levine. “As expected, comparable-store sales were pressured, as we anniversaried strong consumable sales growth last year. In addition, our core customers continued to face economic uncertainties, and the promotional environment intensified.”