In 2014, Fred's closed 70 stores, 60 that didn't have pharmacies, in order to change its store model to focus on pharmacy and convenience sales. The change was a result of the company losing money that year.
Fred's faced financial challenges in the fourth quarter of 2013, as it faced competition from online retailers and the price of generic drugs increased. By closing almost 10 percent of its stores, the company could use that money for initiatives designed to increase pharmacy sales.
Fred's is a discount retailer that began in 1947. Since 1953, the company's corporate headquarters have been located in Memphis, Tennessee. In 2008, the company closed 75 under-performing locations to reduce costs.