Fred's, Inc. is engaged in the sale of general merchandise through its retail discount stores and full-service pharmacies. The Company operates0 in 691 Company owned discount general merchandise stores, including 47 express stores as of February 2, 2013, in fifteen states primarily in the southeastern United States. In addition to the Company owned stores, there were 21 franchised Fred's stores. Fred's stores generally serve low, middle and fixed income families located in small- to medium- sized towns (approximately 85% of Fred's stores are in markets with populations of 15,000 or fewer people). There were 346 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 nationally recognized brand name products, Fred's label products and lower priced off-brand products.