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Customer Snapshot

Helping Family Dollar Stores Move from Good to Great

2 hours:

Time in each store to completely deploy new POS—and train employees.

 

Family Dollar Stores offer everyday consumer basics at very affordable prices. While rapid growth resulted in over 4,400 stores in the last decade, they required help to bring them up to speed with Point-of-Sale and analytics capabilities in order to keep up with the competition and prosper.

 

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Family Dollar Stores

From one store in 1959 to more than 7,400
stores across the United States today

 

Company

Family Dollar Stores, Inc.

Headquarters

Matthews, North Carolina, USA

Customer Website

www.familydollar.com

Revenue

~US$9.3 billion

Number of Employees

55,000

Implementation Partners

Aster Group

Line of Business

Service, Sales

Industry

Retail

Featured Products

SAP Business Planning and Consolidation, SAP Point-of-Sale

History

Helping Americans save dollars for over 50 years

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Helping Americans Save Dollars for Over 50 Years

Founded in Charlotte, North Carolina by Leon Lavine in 1959, the popular discount chain has kept to the principle of offering compelling value and a convenient place to shop. Growing at a rate of up to 500 stores per year in the last decade, Family Dollar now operates more than 7,400 stores in 45 states.



Business Model

Now, much more of a one-stop shop

A few years ago, the stores started carrying a wide array of brand name food products at discount prices, which put Family Dollar into a whole new retail segment. No longer just a store to run in for pens, fertilizer, and a tape measure for a bargain – now mom can check off most of her grocery list, too.

 

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Adapting to the Customer’s Needs

Success Strategy

Creating the store of the future

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Deploying Point-of-Sale and analytics software is the foundation for boosting sales and service.

Technology and the Three-Fold Plan

Knowing they needed to be modernized with Point-of-Sale (POS) and analytics software, they created a concept that used their new strength to boost sales and service while delivering three key components:

  • A new broader array of products to customers
  • More convenient shopping and check-out experience
  • More payment options at the register

 

The Challenge

Needing the right solutions and support

Family Dollar wanted to broaden its merchandise assortment, increase the types of tender accepted, and integrate its point-of-sale (POS) equipment with backend software. Further, they wanted to not only complete annual budget and forecasts quickly and accurately, but also to analyze their 7,400 store portfolio and plan accordingly to meet shoppers’ current and future demands. This vision required one version of the truth, standard templates, and process flow.

 

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Needing the Right Solutions and Support

On top of deploying new POS and analytics technology in 7,400 stores, it had to be done without interrupting business hours.

Enter SAP

Finding the perfect solutions

SAP and Aster Group were able to offer Family Dollar exactly what they were envisioning:

  • Advanced POS processing for multiple tender types
  • Flexible scalability to meet changing needs
  • Added ability of promotional, pricing, and discount tools
  • Integrated software with a user-friendly interface
  • Speedy implementation and less on-going IT involvement required

 

The SAP Experience

No small thing

“The complexity of operating a retail chain across the United States should not be underestimated.
The SAP Point-of-Sale application has allowed us to operate effectively in this increasingly complicated and competitive world.”

- Josh Jewett, CIO, Family Dollar Stores, Inc.

 

The SAP Point-of-Sale application deployment plan was carried out with the help of a third party vendor out in the field. It became routine to roll out 400 stores per month as they worked together to bring all 7,400 Family Dollar Stores up to modern times. For the SAP Business Planning and Consolidation application, Family Dollar successfully employed a co-development model with Aster Group.


Running Better

Better stores of the future

Implementing the SAP Point-of-Sale application as part of a multiyear investment to create its “Store of the Future” helped Family Dollar Stores become more competitive while establishing an infrastructure to support continuing growth and profitability. The SAP Business Planning and Consolidation application only complemented the benefits from the POS implementation. With improved financial performance management, Family Dollar can now quickly assess performance of the store portfolio, allowing them to budget strategically and to manage risks appropriately.

 

Now, even though they added complexity to their system, the process is actually simpler—and allows Family Dollar to steadfastly support its value and convenience principles.

Benefits

Beyond the dollars

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17% faster customer throughput comes from the ripple effect of benefits.

Sometimes it’s the unforeseen benefits that feel even better. Family Dollar consolidated 20 different data sources into one view of the truth with SAP Business Planning and Consolidation, which allows them to make better decisions. Further, 17% faster customer throughput not only meant a better customer experience—but also enabled the reduction of registers in 1,200 stores. That’s amazing, considering the greater number of complexities added to transactions to allow multiple tenders, promotions, and coupons.

Lessons Learned

Surprise gems

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“It’s a real asset to have a tool that you can configure to adapt to each state’s taxes and regulations.”

– Josh Jewett, CIO, Family Dollar Stores, Inc.

With stores in almost every US state, Family Dollar was thrilled to learn that the SAP platform allows custom configuration for each state’s taxes and regulations.

Today

 

Family Dollar Stores are now more competitive in an increasingly complex retail environment.

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From a broader array of products to more convenient payment options.

But even more important is the ability to meet their customers’ expectations. Shoppers can now choose from multiple payment options like food stamps, credit, debit, and medical benefits cards. They can also redeem coupons and receive promotions at the point of sale.

Journey Ahead

Staying focused on offering value and convenience

Becoming a “Store of the Future” has opened new revenue opportunities while enabling Family Dollar to hold fast to its principle of offering value and convenience.

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