Fred's Stores: An Analysis of Retail Diffusion

This study reviews the growth strategy/diffusion of the Fred's discount stores from 1947 to 1993. The diffusion process and the subsequent spatial pattern are the result of several factors which are described analytically. Fred's development/diffusion is basically contagious expansion and is examined through the use of historical and anecdotal data. These data are analyzed using logistics curve and cartographic analysis. Fred's spatial pattern of growth is compared to the contagious expansion diffusion of the Wal-Mart discount store chain prior to the latter's widespread entry into metropolitan markets. Those factors affecting Fred's location strategy—such as demographic requirements, small-town markets, competition, and real estate opportunities—are described. Market factors, the effect of large discount stores, and financial factors are likewise examined.