Family Dollar Stores, Inc. operates a chain of self-service retail discount stores. As of June 1, 2002, the Company operated 4,431 stores in 40 states and the District of Columbia. During the last 10 years, over 2,300 new stores have been added to the chain, of which more than 1,500 were added in the last five fiscal years. The merchandising concept responsible for this growth provides customers with good values in low-cost, basic merchandise for family and home needs. The merchandise is sold at everyday low prices in a no-frills, low-overhead, self-service environment. Most merchandise is priced under $10.00 The relatively small store size, typically 6,000 to 8,000 square feet, permits the Company to open new stores in rural areas and small towns, as well as in large urban centers. Within these markets, the stores are located in shopping centers or as freestanding buildings convenient to the Company's value-conscious customer base.