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54 JOSEPH W. LEONARD

To support its retail operations, Family Dollar operates nine automated full-service
distribution centers (each ranging in size from 850,000 square feet to 907,000 square feet)
that ship directly to company stores. The company uses a Web-based transportation man-
agement system, voice-recognition software, radio-frequency technology and high-speed
sorting systems for better distribution process efficiency. Family Dollar has a strong pres-
ence in the southern United States. Seven of its nine distribution centers are located in the
South (northern Virginia, western North Carolina, panhandle of Florida, eastern Kentucky,
eastern Arkansas, southwestern Oklahoma, and western Texas); the other two are in
upstate New York and eastern Iowa. The company operates few stores in the Rocky
Mountain region and only the Nevada stores in the Pacific time zone. Exhibit 5 shows the
store locations.

EXHIBIT 5 Family Dollar, by State and Number of Stores

Number of Stores per 100,000 population
# of Stores # of Stores per 100,000 Population

NORTHEAST
Maine 46 3.49
New Hampshire 22 1.67
Vermont 12 1.93
Massachusetts 99 1.53
Rhode Island 20 1.90
Connecticut 51 1.46
New York 290 1.49
Pennsylvania 264 2.11
New Jersey 80 0.92
Delaware 21 2.41
Maryland 92 1.64
District of Columbia 3 0.50
SOUTH
Virginia 214 2.75
West Virginia 115 6.34
North Carolina 364 3.95
South Carolina 198 4.42
Georgia 303 3.07
Florida 363 1.98
Kentucky 186 4.36
Tennessee 204 3.28
Alabama 145 3.13
Mississippi 118 4.02
Arkansas 98 3.43
Louisiana 229 5.19

MIDWEST
Ohio 411 3.58
Indiana 195 3.04
Michigan 348 3.48
Wisconsin 140 2.49
Illinois 238 1.84

continued