Hewlett-Packard and Family Dollar Partner for Retail Solution

Strategic Insights -

Hewlett-Packard Company today announced that Family Dollar, Inc., a leading discount-store chain in the United States, will migrate its enterprise from a mainframe environment to an HP 9000 Enterprise Server platform. This move allows Family Dollar to leverage advanced technology, better understand customer needs, and predict demand more accurately. The new solution, built on HP's Extended Enterprise strategy for retail, will provide a flexible IT environment with best-in-class solutions partners, supporting Family Dollar's growth and evolving business strategies.

Key Takeaways:

  • Family Dollar will run its mission-critical applications, including financial, supply-chain management, and core business applications, on high-end HP 9000 V-class Enterprise Servers.
  • The solution will utilize Oracle Retail and Retek Information Systems' packaged applications to integrate financials, human resources, payroll, and e-commerce systems with enterprise suite applications.
  • The new system will enable Family Dollar to understand customer merchandising needs and predict demand more accurately, rolling this data back into business operations to distribute merchandise more efficiently to its over 3,000 stores.
  • HP's Extended Enterprise strategy for retail provides an open, flexible IT environment to accommodate Family Dollar's rapid growth and evolving business strategies.
  • HP was ranked the market leader in high-end UNIX system server shipments and revenue, according to IDC, with over 1,000 HP 9000 V-Class Enterprise Servers sold.
  • Family Dollar operates over 3,017 stores in 38 states, with plans to open 350-400 stores during the current fiscal year.
  • The company had revenue of $2.36 billion for the fiscal year ended August 29, 1998, and opened 315 stores while closing 65 stores, resulting in a net addition of 250 stores.

Statistics:

  • Family Dollar operates over 3,000 stores in 38 states.
  • FY 1998 sales reached $2.36 billion.
  • Family Dollar plans to open 350-400 stores during the current fiscal year.
  • HP was ranked the market leader in high-end UNIX system server shipments and revenue, according to IDC, with over 1,000 HP 9000 V-Class Enterprise Servers sold.
  • HP has 127,200 employees and had revenue of $42.9 billion in its 1997 fiscal year.

Sources:

  • "HP's products and strong relationships with other industry leaders, such as Oracle and Retek, played a big role in Family Dollar's ultimate decision." - Wayne Usie, divisional vice president of I.T.
  • "HP has demonstrated its ability to provide the level of performance and scalability needed within one box to serve our enterprise." - Wayne Usie, divisional vice president of I.T.
  • "HP's Extended Enterprise strategy for retail provides Family Dollar with an open, flexible IT environment." - Cassandra Moren, HP retail marketing manager.
  • http://www.hp.com
  • http://www.hp.com/go/retail
  • International Data Corporation's (IDC) first- and second-quarter 1998 data.