Family Dollar escalates private brand efforts

The nation’s second largest dollar store chain may have rejected a buyout offer this week, but it struck a deal of another kind to help it grow sales of private brands.

Family Dollar said it had reached a strategic alignment agreement with Marketing Management Inc. help it with a range of private label issues including sourcing, product development, category analytics, assortment strategy, quality assurance and customer insights. Fort Worth-based MMI will maintain an on-site presence at Family Dollar’s headquarters in Matthews, N.C. The strategic alignment with MMI was formally announced at a private brand summit Family Dollar held at it offices that was attended by 100 suppliers.

“Enhancing our private brand assortment to drive margin improvement and customer loyalty is a key strategic initiative for Family Dollar,” said Don Hamblen, Family Dollar’s SVP customer marketing. “A compelling assortment of private brand merchandise gives our value-conscious customer more choices at lower prices without lower standards. Our alignment with MMI will help ensure our assortment is focused on quality and value across all our consumables departments.”

MMI is a sales and marketing company focused on private brands that maintains relationships with more than 600 product manufacturers in the food, household and health and beauty categories. Family Dollar said it is looking to grow its high quality, value-priced, private brand alternatives for shoppers and indicated that MMI and its partners are able to promote increased sales through innovative marketing programs that raise awareness and improve consumer perception of the retailer’s brands.