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59-463: In June 2014, activist investor and major shareholder Carl Icahn demanded that Family Dollar be immediately put up for sale. On July 28, 2014, Dollar Tree announced that it would buy Family Dollar for $ 8.5 billion. The sale delivered a windfall to the company's biggest shareholder, Carl Icahn, who had acquired his 9.4 percent stake in June 2014. On January 22, 2015, Family Dollar shareholders approved

118-402: A warehouse , a DC , a fulfillment center , a cross-dock facility , a bulk break center , and a package handling center . The name by which the distribution center is known is commonly based on the purpose of the operation. For example, a "retail distribution center" normally distributes goods to retail stores, an "order fulfillment center" commonly distributes goods directly to consumers, and

177-423: A 2015 survey of corporate development leaders found that 60% of respondents saw shareholder activism affecting transaction activity in their industry. Increasingly, however, the non-financial form of shareholder activism is affecting companies in a range of sectors. Shareholders, often with a comparatively small stake in a company, are seeking to influence the company's environmental and social performance. Some of

236-418: A California-based but Delaware-registered corporation may be "pseudo-foreign" under California law and therefore have to comply with California law. Taking an activist approach to public investing may produce returns in excess of those likely to be achieved passively. A 2012 study by Activist Insight showed that the mean annual net return of over 40 activist-focused hedge funds had consistently outperformed

295-652: A commercial market, with each center serving a number of stores. Large distribution centers for companies such as Walmart serve 50–125 stores. Suppliers ship truckloads of products to the distribution center, which stores the product until needed by the retail location and ships the proper quantity. Since a large retailer might sell tens of thousands of products from thousands of vendors, it would be impossibly inefficient to ship each product directly from each vendor to each store. Many retailers own and run their own distribution networks, while smaller retailers may outsource this function to dedicated logistics firms that coordinate

354-472: A company with the intention to influence leadership must be accompanied by a Schedule 13D filing; investors who do not intend to become activists may file a Schedule 13G instead. Historically, investors were required to mail separate ballots when trying to nominate someone of their own to the board, but beginning in 2015, proxy access rules began to spread driven by initiatives from major institutional investors, and as of 2018, 71% of S&P 500 companies had

413-480: A cross-dock facility stores little or no product but distributes goods to other destinations. Distribution centers are the foundation of a supply network , as they allow a single location to stock a vast number of products. Some organizations operate both retail distribution and direct-to-consumer out of a single facility, sharing space, equipment, labor resources, and inventory as applicable. A typical retail distribution network operates with centers set up throughout

472-464: A deal valuing Family Dollar at $ 8.5 billion, and that Dollar Tree would also assume $ 1 billion in debt currently owed by Family Dollar, for a total of $ 9.5 billion. Dollar Tree CEO Bob Sasser said that Family Dollar CEO Howard R. Levine will remain with the company following the merger and will be appointed to Dollar Tree's board of directors . Dollar General entered the bidding, shortly thereafter, surpassing Dollar Tree's offer on August 18, 2014, $ 78.50

531-525: A deal with Dollar General since the start of the year, and that was the reason it was not accepting the Dollar General bid. On January 22, 2015, Family Dollar shareholders approved the Dollar Tree bid. Several stores were required to be sold as a condition of the sale. Sycamore Partners acquired the stores in 2014 under the corporate name Dollar Express. The stores continued to operate under

590-671: A desirable target for an activist investor. Lately, both scholars and practitioners started using machine learning methodologies to predict both targets and activists. Any shareholder, including non-institutional retail investors , may submit a shareholder proposal in the United States, and between 1934 and the mid-1980s these shareholders typically submitted proposals. One estimate placed institutional owners at 68% of shares and retail at 32% of shares, but 98% of institutional owners vote and only 28% of retail owners vote. Institutional shareholders, however, often vote automatically upon

649-905: A fat premium, often at the expense of the other shareholders. More recently, activist investor Phillip Goldstein suggested that the role of the activist investor has moved from green mail to one of being a catalyst to unlock value in an underlying security, and says that the public perception of activist investors as "corporate raiders" has dissipated. In 2019, notable activist investors included Starboard Value , Icahn Enterprises , Elliot Management , and Third Point . In 2019, mutual funds such as Wellington Management Company had begun to show signs of activism. Examples of activist investors in Asia include Oasis Management . Activist investors advertise their message out in various ways including postal mail, websites, and social media. As of 2018, there had been an average of 272 activist campaigns per year in

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708-421: A full pallet must be broken apart, the costs of handling the product can increase quickly. Many distribution centers use large sortation systems with miles of conveyor to move products through the facility and into a truck. They may also have automated equipment for de-palletizing and re-palletizing product. Some of the most sophisticated systems can convey product directly into storage racks and then convey out of

767-700: A key aspect of sustainable operations. The U.S. Environmental Protection Agency (EPA) suggests that improving energy efficiency in distribution centers can save up to 25% of the energy consumed. To achieve this, distribution centers are upgrading their lighting systems to energy-efficient alternatives such as LED lighting, which can save up to 75% in energy consumption. In addition, motion sensors are installed to automatically turn off lights in unoccupied areas, further reducing energy waste. The adoption of energy-efficient HVAC systems and regular maintenance can enhance efficiency and reduce energy waste, while thermal insulation of buildings helps to prevent heat transfer and reduce

826-535: A newer store format known as "H2" in new and renovated locations, which have a larger focus on groceries and incorporate Dollar Tree merchandise. The company has also deployed co-branded Family Dollar/Dollar Tree stores in smaller markets. Family Dollar, and dollar stores in general, have been alleged by a number of studies, individuals, and organizations to proliferate food deserts : areas with limited access to healthy and affordable food. Dollar stores are alleged to outcompete local grocery stores, and end up being one of

885-420: A proxy access rule. Votes for the board may be "straight" or "cumulative". In straight voting (aka statutory voting), shareholders get one vote per share on all ballot questions (e.g., candidates for the board of directors or shareholder proposals). In cumulative voting , a shareholder receives a general vote for however many number of ballot questions there are. The votes can then be all cast for (or against)

944-477: A role in optimizing waste management processes, with the implementation of waste tracking software and automated waste collection systems improving efficiency and reducing operational costs. A distribution center typically has a general manager who manages the facility and typically has a number of department managers who report directly to him/her. Most distribution centers divide staff into two categories, direct labor and indirect labor. Direct labor staff execute

1003-533: A safe and productive workspace. To achieve this goal, implementing a comprehensive safety plan that covers all areas of the warehouse and applies to all employees is paramount. Owners and managers must be willing to invest time and money towards safety measures, which should be included in the overall budget. This way, a safer working environment can be established for all those involved in the distribution center industry. Because many distribution centers service both large and small clients, especially those which store

1062-469: A set of products is a warehouse or other specialized building , often with refrigeration or air conditioning , which is stocked with products ( goods ) to be redistributed to retailers , to wholesalers , or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process. Distribution centers are usually thought of as being demand driven . A distribution center can also be called

1121-409: A share compared to Dollar Tree's offer of $ 74.50 a share. The enterprise value of the Dollar General bid was $ 9.7 billion compared to that of Dollar Tree of $ 9.2 billion, while the quantum return to shareholders was varying as the stock and cash deal valuation was subjected to fluctuations of price of the competing bidders stock. On August 20, 2014, Family Dollar rejected the Dollar General bid, saying it

1180-457: A single ballot question, which makes it easier for minority shareholders to elect candidates. There has also been a movement toward "majority" voting, where a candidate must receive the majority of votes. Most large corporations are incorporated in Delaware due to the well-developed Delaware General Corporation Law ; in Delaware, cumulative voting is optional, but exceptions exist; for example,

1239-491: A specific type of service as opposed to those which serve a specific company, roles and departments are generally more complicated. A simple distribution center which serves many clients of a specific theme or type of service may include: Distribution centers also have a variety of supporting departments, including human resources , maintenance/facilities operations, production control, and accounting . Modern distribution centers are increasingly focusing on energy efficiency as

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1298-471: A successful campaign. In comparison, a full takeover bid is a much more costly and difficult undertaking. The goals of shareholder activism range from financial (increase of shareholder value through changes in corporate policy, cost cutting , etc.) to non-financial ( disinvestment from particular countries, etc.). Shareholder activists can address self-dealing by corporate insiders, although large stockholders can also engage in self-dealing to themselves at

1357-671: A takeover offer by Nelson Peltz 's Trian Fund Management reportedly between $ 55 and $ 60 a share. On June 6, 2014, activist investor Carl Icahn disclosed that his firm, Icahn Enterprises , held a 9.4% stake in Family Dollar. On June 19, 2014, Icahn demanded in an open letter that Family Dollar be put up for sale immediately. Goldman Sachs and other analysts had identified a number of potential buyers. As of June 19, 2014, 22% of Family Dollar's shares were controlled by activist investors. On July 28, 2014, Dollar Tree announced that it would acquire Family Dollar for $ 74.50 per share,

1416-706: The Change to Win Federation often engage in shareholder proposals. The Shareholder Rights Group is a coalition of shareholder proposal advocates. Organizations such as the Interfaith Center on Corporate Responsibility (ICCR) , As You Sow and Ceres use shareholder resolutions, and other means of pressure, to address issues such as sustainability and human rights. For an analysis of the hundreds of annual shareholder resolutions, see Proxy Preview. Distribution center A distribution center for

1475-842: The 1940s and 1950s. Notable investors included Cyrus S. Eaton , Phoenix Securities Corporation , Benjamin Graham , J. Paul Getty , and Malcolm Chace . Activism was likely limited by the lack of ownership dispersion, meaning that many corporations had large shareholders with sizable blocks (10 to 20% of total shares) who already exerted significant control over the corporation. Notable activist investors include: Isaac Le Maire (1558–1624), Carl Icahn , Nelson Peltz ( Trian Partners ), Bill Ackman ( Pershing Square ), Daniel Loeb ( Third Point Management ), Barry Rosenstein , Larry Robbins ( Glenview ), David Einhorn , Gregg Hymowitz (EnTrust Global), Larry Fink ( BlackRock ), Christer Gardell ( Cevian Capital ), and Ryan Cohen . During

1534-456: The 1960s, the store company was largely a southern United States operation. By 1969, there were fifty stores in Charlotte alone. The 1970s were growing years for the store chain. In 1970, Family Dollar's stock went public for the first time, at $ 14.50 per share. In 1971, the chain's 100th store opened, followed by their 200th in 1974 and their 300th in 1978. Also in 1974, a distribution center

1593-405: The 1980s, activist investors such as Carl Icahn and T. Boone Pickens gained international notoriety and were often perceived as " corporate raiders " for acquiring an equity stake in publicly owned companies, like Icahn's investment in B.F. Goodrich, and then forcing companies to take action to improve value or rid themselves of rebel intruders like Icahn by buying back the raider's investment at

1652-681: The Dollar Tree bid. Family Dollar, and dollar stores in general, have been alleged to create food deserts : areas with poor access to healthy and affordable food. Family Dollar was founded in 1959 by Leon Levine , a 21-year-old entrepreneur. In November of that year, the company's first store was opened, in Charlotte, North Carolina . In 1961, their first store in South Carolina opened, followed by stores in Georgia and Virginia , which were opened in 1962 and 1965, respectively. During

1711-519: The Family Dollar name. In 2017, Dollar General acquired Dollar Express and converted the stores. As a result of Family Dollar's sale to Dollar Tree, some Family Dollar stores have opened in the same plaza, and at times even next door to Dollar Tree locations. On March 6, 2019, the retailer announced that it will close up to 400 stores nationwide due to heavy pressure from an activist investor . Most store locations were either shut down entirely or replaced with Dollar Tree stores. The company has deployed

1770-733: The MCI/Verizon merger. Corporations in 18th-century Europe were privileged and relatively uncommon, but in the United States became much more common, starting with 300 in the 1790s and expanding by around 26,000 between 1790 and the 1860s, resulting in about 15 times the corporations in Great Britain by 1830. These early corporations contained various provisions for corporate governance , including restricted charters, bylaws, prudent-mean voting rules, dividend payments, and press coverage. From 1900 to 1950, about 1.22 "offensive" activist initiatives occurred per year, with more occurring in

1829-574: The MSCI world index in the years following the global financial crisis in 2008. Activist investing was the top-performing strategy among hedge funds in 2013, with such firms returning, on average, 16.6% while other hedge funds returned 9.5%. Shareholder activism directed at both European and American companies has been surging. A 1996 study found that larger firms with higher institutional holdings made firms more likely to be targeted by activist investors. Researchers also try to understand what makes company

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1888-665: The USA) which is why it has been designated as a priority industry sector in the National Occupational Research Agenda (NORA) by the National Institute for Occupational Safety and Health (NIOSH) in the United States. To mitigate the number of accidents, it's crucial to establish a culture of safety across all levels of management within the warehouse. This means that executives and owners must enforce safety procedures and regulations to ensure

1947-625: The United States, including 47 proxy contests. About 47% of targeted companies were outside of the United States. As of 2020, passive investors such as index funds by Vanguard as well as non-activist but still active management investors such as mutual funds play a significant role in corporate governance. These firms use proxy advisory firms such as Institutional Shareholder Services to receive recommendations on how to vote on shareholder proposals. Activist investors are often hedge funds funded by accredited investors and institutions. In 2019, institutions were demanding more upfront explanation of

2006-523: The activist ideas before funding, and in some cases requiring that the funds be placed into special purpose vehicles specifically for the project. Activist hedge funds, which are hedge funds that "take concentrated positions in the equity of public corporations and actively engage with corporate managers" can address the principal-agent problem and limit self-dealing by providing management with high-powered incentives to increase value. Shareholder activism can be categorized as "offensive" or "defensive"; in

2065-470: The advice of proxy advisory firms ; allowing retail shareholders to vote based upon a guideline ("standing voting instructions") has been proposed to increase their involvement. Various websites have been created to facilitate retail involvement, including Moxy Vote, Shareowners.org, United States Proxy Exchange and ProxyDemocracy.org, but over time these generally shut down. Labor unions, including through pension funds such as CalPERS coalitions such as

2124-484: The company announced that the West Memphis distribution center would be shut down permanently on or before July 17, 2022 with over 300 employees affected. In March 2024, Dollar Tree, owner of Family Dollar stores since 2015, announced it would close 600 retail stores by July 2024 and another 370 over the next few years. The company will also close 30 Dollar Tree stores as well. In March 2011, Family Dollar rejected

2183-413: The distribution of products for a number of companies. A distribution center can be co-located at a logistics center . A large distribution center might receive and ship more than ten thousand truckloads each year, with an individual store receiving from only a couple of trucks per week up to 20, 30, or more per week. Distribution centers range in size from less than 50,000 square feet (5,000 m ) to

2242-480: The expense of smaller minority shareholders. Shareholder activism can take any of several forms: proxy battles , publicity campaigns, shareholder resolutions , litigation, and negotiations with management. Daniel Loeb , head of Third Point Management , is notable for his use of sharply written letters directed towards the CEOs of his target companies. Activism may help to address the principal-agent problem where

2301-758: The family. In March 2005, Family Dollar restated the company's fiscal 2000 to fiscal 2004 earnings per share downward by 2 cents to 3 cents a year, to correct lease-accounting issues. As of August 2011, there were 7,000 stores in 44 states. According to their website in 2005, Family Dollar opened 500 new stores, 350 more in 2006, and an additional 300 in 2007. According to the Company's 2013 Corporate Profile in 2010, Family Dollar opened 200 new stores, 300 more in 2011, 475 in 2012, and an additional 500 in 2013. On October 3, 2012, Family Dollar said they will open 500 stores in 2013. The next day, Family Dollar partnered with Healthways. Family Dollar operates 11 distribution centers -

2360-448: The few options available for purchasing food in some communities. In line with these allegations, a number of states have passed restrictions on where new dollar stores can be opened. Activist shareholder Shareholder activism is a form of activism in which shareholders use equity stakes in a corporation to put pressure on its management . A fairly small stake (less than 10% of outstanding shares) may be enough to launch

2419-468: The floor, then consideration needs to be given in the design stage to the placement of columns, particularly as they relate to the flue space between pallet rack frames. Other planning considerations include attention to such areas as slotting, product replenishment, storage media, and power requirements. The distribution center industry is no stranger to occupational hazards and accidents, (95 people receive physical injuries in forklift accident every day in

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2478-459: The largest identified in 2015 approaching 3 million square feet (300,000 m ). Goods (products) arrive and are stored in a distribution center in varying types of storage locations and containers suited to the product characteristics and the amount of product to be transported or stored. These types of locations and containers have specific industry-accepted names. Specialized pieces of equipment (material handling equipment, or MHE) are used to handle

2537-605: The latest of which opened in St. George, Utah on October 16, 2013. Family Dollar created a game show based on the store in late 2016. Hosted by celebrity chef Pat Neely , the show Save to Win aired on The CW between 2016 and 2017. In May 2020, eight Family Dollar stores were damaged by rioting and looting during the George Floyd protests in Minneapolis–Saint Paul , with two locations being destroyed by arson during

2596-441: The latter case, an existing shareholder attempts to correct some deficiency, while offensive activists build a position with the intention to agitate for change. Shareholders can also initiative a derivative suit to force action by the corporation. Shareholders can also engage in a securities class action but these are typically not associated with activism. In the United States, acquisition of over 5% of beneficial ownership in

2655-466: The load on HVAC systems. These energy-efficient strategies not only help reduce carbon emissions but also result in significant cost savings over time, with energy-efficient buildings typically using 20-30% less energy according to the U.S. Department of Energy . Waste management is another critical component of sustainable practices in modern distribution centers. Effective waste management strategies include conducting regular waste audits to understand

2714-509: The management (agents) do not adequately respond to the wishes of the principals (investors) of publicly traded companies. In the 2010s, investments in the activist asset class grew, with activists receiving coverage by the media and positive attention from investors. Activists have typically engaged in adversarial campaigns, but have also in some cases been able to acquire board seats with a formal proxy context. Shareholder activists are making their mark on mergers and acquisitions as well –

2773-583: The operation (see demand chain management ). The most efficient method of distribution would be to ship a full truckload or railcar directly from the manufacturer to the retailer. The next most efficient method would be to ship a full truckload to a distribution center, unload full pallets of products, and immediately load the pallets onto trucks destined for individual stores. Both of these methods can be used only on very high-volume items. Most products cannot be delivered in this manner, and pallets or even individual boxes must be broken down and divided. Once

2832-692: The pace of growth increased significantly, with the addition of about 3,500 new stores, and new distribution centers opening in Morehead, Kentucky ; Maquoketa, Iowa ; Odessa, Texas ; Marianna, Florida ; and Rome, New York . In 2001, Family Dollar joined the S&;P 500 stock market index . In 2002, the company joined the Fortune 500 list of largest publicly held companies. When Leon Levine retired in 2003, his son Howard R. Levine succeeded him as Chairman and CEO , keeping this multibillion-dollar company in

2891-433: The product delivered to the end user. Efficient processing not only directly impacts the cost of goods through reduced labor, but it also indirectly impacts the cost of goods through reduced inventory. Inventory represents an investment with its associated investment interest or inventory carrying cost. Reducing the processing time of order processing can directly reduce the amount of inventory necessary to be stocked in

2950-426: The product is going into storage or directly to a store, or by the type of vehicle delivering the product. A number of components go into the overall planning of a distribution center in order to maximize its efficiency. If the distribution center relies on a conveyor system suspended from the ceiling, consideration needs to be given to the weight-bearing capacity of the ceiling joists. If the conveyor system runs along

3009-496: The racks to trucks, all automatically. With a wide variety of product sizes and weights, these systems are designed to handle a specific range of products. Very large, small, heavy, or light products require varying degrees of manual handling. As the process of handling involves more steps and becomes increasingly manualized, the cost increases. Storing products instead of receiving and immediately shipping them adds cost. Firms must determine when lost sales due to not having product on

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3068-443: The receiving dock , the storage area, and the shipping dock. In small organizations it is possible for the receiving and shipping functions to occur side by side, but in large centers, separating these areas simplifies the process. Many distribution centers have dedicated dock doors for each store in their shipping area. The receiving area can also be specialized based on the handling characteristics of freight being received, on whether

3127-490: The recent activist investment funds include: California Public Employees' Retirement System (CalPERS), Icahn Management LP , Santa Monica Partners Opportunity Fund LP, State Board of Administration of Florida (SBA), and Relational Investors, LLC . Due to the Internet, smaller shareholders have also gained an outlet to voice their opinions. In 2005, small MCI Inc. shareholders created an online petition to protest

3186-425: The shelves are balanced by increased handling and storage costs. Conversely, automating these additional manual steps can reduce the labor and costs associated with these processes. For example, automatic box-opening technology makes the process of opening individual boxes for re-packaging much faster. All distribution centers have three main areas and may have additional specialized areas. The three main areas are:

3245-612: The types and quantities of waste produced, implementing source segregation to separate recyclables from non-recyclables, and adopting waste-to-resource conversion methods such as composting food waste or selling cardboard and paper waste to recycling companies. By engaging with suppliers to explore packaging alternatives that reduce waste generation and implementing sustainable waste management practices, distribution centers can minimize their environmental impact, reduce operational costs, and enhance their brand reputation among environmentally conscious customers. Technological advancements also play

3304-412: The various types of containers. The following is a list of some of the names and characteristics of common storage containers: Another way to look at a distribution center is to see it as a production or manufacturing operation. Goods arrive in bulk, they are stored until needed, retrieved, and assembled into shipments. The efficient processing of a distribution center can greatly impact the final price of

3363-568: The widespread civil unrest. In February 2022, Family Dollar temporarily closed 400 stores in Alabama, Arkansas, Louisiana, Mississippi, Missouri, and Tennessee and recalled certain products purchased from January 1, 2021, through the present after the FDA found unsanitary conditions, including a rodent infestation, at the company’s distribution center in West Memphis, Arkansas . On May 18, 2022,

3422-461: Was not a matter of price, but concerns over antitrust issues that had convinced the company and its advisers that the deal could not be concluded on the terms proposed. Days after, Dollar General CEO Rick Dreiling sent a letter to the Family Dollar board of directors claiming that Levine rejected merger requests to protect his job. Levine, in a statement, said the Family Dollar board had been analyzing potential antitrust issues that could arise from doing

3481-676: Was opened in Matthews, North Carolina . In 1979, Family Dollar stock began trading at the New York Stock Exchange . In 1981, the chain's 400th store was opened, followed by a 500th store in 1982 and a 700th in 1983. The 1980s saw expansion at a wider scale for the company, and by 1989, 1,500 stores were operating. The 1990s saw the pace of expansion slow down compared to the 1980s, with 1,000 stores opened. The company opened distribution centers in West Memphis, Arkansas ; Front Royal, Virginia and Duncan, Oklahoma . Since 2000,

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