Duckwall-ALCO Approves Name Change to ALCO Stores, Inc., Adding Clarity to Brand Valued by Consumers in 23 States
June 28 2012 - 4:31PM
Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK), which specializes in
providing a superior selection of essential products for everyday
life in small-town America, announced at its June 27 annual meeting
of shareholders that the Company's name will officially change to
ALCO Stores, Inc. An amendment to the Articles of Incorporation was
approved yesterday at the annual meeting. ALCO Stores also plans to
change its ticker symbol on NASDAQ to "ALCS." Both the name change
and the change in ticker symbol will be effective as of July 6,
2012.
Richard Wilson, President and CEO, commented, "The evolution of
the ALCO brand began 40 years ago when the Duckwall family
recognized that customers were demanding greater variety and
service while still receiving exceptional value. With the changing
consumer interests, the Company began building larger stores they
called ALCO and began phasing out the much smaller 'five and dime'
Duckwall stores, culminating with the closure of the remaining
stores in 2011. The Duckwall name has been important in our
company's 111-year history, and we honor our founder, A.L.
Duckwall, in many ways, including the enhancement of the ALCO
brand."
Wilson continued, "Not only is ALCO the place to "Shop Smart and
Save Smart" at 216 locations in 23 states, but customers can also
access exceptional value at our newly launched ecommerce store at
www.ALCOstores.com. The new corporate brand adds clarity for
customers who value the remarkable quality at reasonable prices
they find every day at ALCO stores."
During the annual meeting, Wilson also outlined initiatives to
drive further improvement in financial results, even in the midst
of the current challenging economy:
- Regional pricing – identifying opportunities to price specific
items differently in different ALCO markets, depending on regional
competitive situations, while maintaining ALCO's superior value
positioning with shoppers in each market.
- Regional merchandising – tailoring product offerings for
specific needs in ALCO regions. For example, ALCO has seen good
results from adding fire-retardant clothing in stores in
oil-drilling areas and higher-end outdoor apparel in areas
frequented by outdoors enthusiasts, like Colorado and other Western
states.
- Ecommerce – now offering 10,000 items, a number that will
continue to grow, in a well-designed online store launched this
month. The www.ALCOstores.com site reinforces brand loyalty of
current ALCO shoppers and is beginning to add new customers, Wilson
said. He expects the ecommerce store to become ALCO's largest
store, adding to sales and earnings, with lower overhead offsetting
thinner gross margins.
Wilson also addressed steps ALCO is taking to rationalize its
real estate portfolio. He explained that five new stores are slated
to open in fiscal 2013 -- targeting robust regional economies, such
as those in energy exploration areas -- while eight underperforming
locations are expected to close. He explained that ALCO stores in
energy regions are significantly outperforming the average of all
216 stores.
Wilson concluded, "Improving productivity and profitability
across the store base takes time – and we are proceeding cautiously
-- but we believe there is potential to significantly improve
shareholder returns."
About ALCO Stores, Inc.
ALCO Stores, Inc. is a broad-line retailer, primarily located in
small underserved communities across 23 states. The Company
has 216 ALCO stores that offer both name brand and private label
products of exceptional quality at reasonable prices. We are
proud to have continually provided friendly, personal service to
our customers for the past 111 years. To learn more about the
Company, visit www.ALCOstores.com.
The Duckwall-ALCO Stores, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5865
Forward-looking statements
This press release contains forward-looking statements, as
referenced in the Private Securities Litigation Reform Act of 1995
("the Act"). Forward-looking statements can be identified by the
inclusion of "will," "believe," "intend," "expect," "plan,"
"project" and similar future-looking terms. You should not rely
unduly on these forward-looking statements. These forward-looking
statements reflect management's current views and projections
regarding economic conditions, retail industry environments, and
Company performance. Forward-looking statements inherently involve
risks and uncertainties, and, accordingly, actual results may vary
materially. Factors which could significantly change results
include but are not limited to: sales performance, expense levels,
competitive activity, interest rates, changes in the Company's
financial condition, and factors affecting the retail category in
general. Additional information regarding these and other factors
may be included in the Company's 10-Q filings and other public
documents, copies of which are available from the Company on
request and are available from the United States Securities and
Exchange Commission.
CONTACT: For more information, contact:
Wayne S. Peterson
Senior Vice President - Chief Financial Officer
785-263-3350 X164
email: wpeterson@alcostores.com
or
Debbie Hagen
Hagen and Partners
913-642-6363
email: dhagen@hagenandpartners.com
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