Fred’s, Inc. operated 6939, as of January 31, 2009, discount general merchandise stores in 15 states primarily in the southeastern United States. Fred’s stores generally serve low, middle and fixed-income families located in small- to medium-sized towns. Full service pharmacies are included in 284 of the Company’s stores as of January 31, 2009. The Company also markets goods and services to 24 franchised Fred’s stores. Fred’s stores stock over 12,000 frequently purchased items, which address the everyday needs of its customers, including nationally recognized brand name products, Fred’s label products and lower priced off-brand products. Fred’s stores have average selling space of 14,590 square feet.