Family Dollar spends about $325,000 per new store, by Ackman's estimate.

This is Ackman's stated estimate, so it is checked against Family Dollar's own disclosures from around 2011 (10-K or investor presentations) on the capital invested in a typical new store (build-out, fixtures and initial inventory, net of payables if disclosed that way), and against credible analyst estimates. True: the disclosed or widely cited figure is within about 15% of $325,000 (roughly $275,000 to $375,000). Mostly true: within 25%, or the figure matches but covers slightly different cost items. Mixed: within 25% to 40%. Mostly false: off by more than 40% but of the same order of magnitude. False: off by more than a factor of two.

Set before the research began.

1. E1 All in the family ira sohn conference.2011 SlideShare (copy of Pershing Square presentation) · 25 May 2011 Own record

   “Estimated Investment $ 325,000”

2. E2 Family Dollar Steps Up Store Expansion, Renovation Supermarket News · 11 October 2010

   “The store renovations, at a cost of $100,000 to $130,000 per store, include expansion of the areas dedicated to food, he pointed out.”

3. E3 Family Dollar Steps Up Store Expansion, Renovation Supermarket News · 11 October 2010

   “Capital expenditures, which totaled about $212 million last year, will increase to about $300 million in fiscal 2011, the company projected.”

4. E4 All in the family ira sohn conference.2011 SlideShare (presentation by Pershing Square Capital Management, L.P.) · 25 May 2011 Own record

   “Estimated Investment $ 325,000”

5. E5 All in the family ira sohn conference.2011 SlideShare (presentation by Pershing Square Capital Management, L.P.) · 25 May 2011 Own record

   “New Store Growth (~$60mm Capex, ~$15mm SG&A): 300 new store openings and 80-100 store closings, 3% net growth”

6. E6 united states securities and exchange commission Dollar General Corporation (Form 10-K, fiscal year ended February 3, 2012)

   “In 2011, the average cost of equipment and fixtures in our traditional leased stores was approximately $180,000. Initial inventory, net of payables, increases the investment in a new store by approximately $75,000.”

7. E7 0001193125-10-236638.txt Family Dollar Stores, Inc. (Form 10-K, fiscal year ended August 28, 2010) · 26 October 2010

   “During fiscal 2011, we plan to renovate 600 to 800 stores at a projected cost of $100,000 to $130,000 per store.”

The only source that gives $325,000 is Pershing Square's own presentation (E1, E4). It labels the figure an estimate, and Ackman described it as based on "what we've been able to glean". Family Dollar's 10-K and the trade press report a renovation cost of $100,000–$130,000 per store and company-wide capex totals (E2, E3, E9), but no new-store investment figure. Dollar General's 10-K (E7) gives figures for a different company, so it cannot settle what Family Dollar spends per new store.