PRIME VENDOR AGREEMENT WITH PRIMARY PHARMACEUTICAL WHOLESALER	12 Months Ended
Jan. 28, 2017
Prime Vendor Agreement With Primary Pharmaceutical Wholesaler
PRIME VENDOR AGREEMENT WITH PRIMARY PHARMACEUTICAL WHOLESALER	NOTE 15: PRIME VENDOR AGREEMENT WITH PRIMARY PHARMACEUTICAL WHOLESALER On August 6, 2014, the Company entered into a Prime Vendor Agreement (the “Vendor Agreement”) with Cardinal Health, Inc., one of the nation’s largest healthcare services companies. Cardinal Health serves as Fred’s primary wholesale supplier for branded and generic pharmaceuticals under a multi-year agreement that began on October 1, 2014. The Vendor Agreement replaced the Prime Vendor Agreement the Company had with AmerisourceBergen Drug Corporation, which expired in accordance with the contract on September 30, 2014. Under the Vendor Agreement, Fred’s and Cardinal Health established a mutually beneficial strategic alliance designed to support Fred’s key initiative of rapid pharmacy growth, and build on a foundation of premier supply chain and asset management tools. The initial term of the Vendor Agreement commenced on October 1, 2014 and continues through the longer of 1) March 31, 2018 or 2) the date upon which the Company’s net aggregate generic purchases reach a certain purchase requirement, provided that date is not before September 30, 2017.

PRIME VENDOR AGREEMENT WITH PRIMARY PHARMACEUTICAL WHOLESALER

12 Months Ended

Jan. 28, 2017

Prime Vendor Agreement With Primary Pharmaceutical Wholesaler

PRIME VENDOR AGREEMENT WITH PRIMARY PHARMACEUTICAL WHOLESALER

NOTE 15: PRIME VENDOR AGREEMENT WITH PRIMARY PHARMACEUTICAL WHOLESALER

On August 6, 2014, the Company entered into a Prime Vendor Agreement (the “Vendor Agreement”) with Cardinal Health, Inc., one of the nation’s largest healthcare services companies. Cardinal Health serves as Fred’s primary wholesale supplier for branded and generic pharmaceuticals under a multi-year agreement that began on October 1, 2014. The Vendor Agreement replaced the Prime Vendor Agreement the Company had with AmerisourceBergen Drug Corporation, which expired in accordance with the contract on September 30, 2014.

Under the Vendor Agreement, Fred’s and Cardinal Health established a mutually beneficial strategic alliance designed to support Fred’s key initiative of rapid pharmacy growth, and build on a foundation of premier supply chain and asset management tools. The initial term of the Vendor Agreement commenced on October 1, 2014 and continues through the longer of 1) March 31, 2018 or 2) the date upon which the Company’s net aggregate generic purchases reach a certain purchase requirement, provided that date is not before September 30, 2017.