Fred’s Super Dollar

Fred’s Super Dollar is a highly popular discount retail chain found mainly in the Southeastern portion of the U.S.A. Even in consideration of other dollar store giants the likes of Dollar General, Family Dollar, and others, such competitors do not detract from Fred’s excellent net lease investing opportunities.

You will generally find twelve year NN leasing with flat fee rentals, subject to price bumps whenever options arise. With newer locations built on a standard size 1.5-2.5 acre lots, pricing tends to average around 8 1/2 to 8 3/4 percent capitalization rates. If the real estate is older, then they are usually higher.

Fred’s retail properties are often constructed in more rural markets, generally consisting of 16,500 square foot structures with an in-house pharmacy for newer developments. Most are solo tenant operated with a drive-through. Some locations will even utilize external grounds for merchandising.

Fred's Super Dollar

Tenant Description

With corporate headquarters located in Memphis, TN, Fred’s Super Dollar began back in 1947 in the heart of Coldwater, MS. Today, operations have expanded to include over seven hundred separate retail stores. Out of those, twenty four have been franchised. Their business focuses on general store discount items, and most properties can be found in the Southeast United States.

In efforts to distance themselves from larger competitors, Fred’s made provisions to incorporate pharmacies into roughly one third of their total store holdings. They also chose to add garden and lawn equipment division, and the sale of tobacco to brand themselves distinctly.

Competitors like Family Dollar, Dollar General, and Dollar Tree are naturally stiff competition in the US discount retail market, especially when adding in the behemoths like Walmart. Fred’s can be found in small rural towns with a population size of fifteen thousand or less.

Having over twelve thousand retail items in 2 distribution centers located in Memphis, TN, and Dublin, GA, they provide a wide assortment of branded merchandise, generic brands, and Fred’s own white label products.