Fred's, Inc. is engaged in the sale of general merchandise through its retail discount stores and full-service pharmacies. The Company operated 679 Company-owned discount general merchandise stores, including 41 express stores as of January 28, 2012, in 15 states primarily in the southeastern United States. In addition to the Company-owned stores, there were 21 franchised Fred's stores. There were 325 full service pharmacies, which are included in the Company owned and express stores. Fred's stores stock over 12,000 frequently purchased items, which address the everyday needs of its customers, including brand name products, Fred's label products and off-brand products. Fred's full-service stores have average selling space of 15,031 square feet. Fred's opened 43 stores and Xpress stores and closed 17 during the fiscal year ended January 28, 2012 (fiscal 2011). In fiscal 2011, the Company added 24 new pharmacies and closed 12 pharmacies.