"What we've developed here is a flexible, scalable model in the data center and the store. I don’t worry a lot about what I have to do five years from now, I worry about a flexible architecture."

Lessons Learned for IT Leaders

Jewett almost makes it sound simple, the tight alignment between his IT group and the business necessary to keep a revamp effort like this one on track. But, he says, one key was that the store of the future vision got set and supported from the top, right from the start.

"Our president and CEO definitely set the strategic agenda," he says. "We really worked collaboratively with the business every step of the way." Like many of his peers, Jewett uses direct relationship managers in IT to stay close to individual parts of the business.

His advice to CIOs facing a major IT overhaul: Focus on the business imperatives and building a strong team. "You need to build a team and maintain a team that will help build that agenda," he says. "It's all well and good to understand what the business wants but it breaks down if you don’t deliver."

But he does more than talk about alignment. "Once a year, I make everyone in IT go work in a store," Jewett says. "The point there is we're here to serve them. It's a subtle but important point. They usually come back and say 'Wow, it's hard to be a store manager.'" And yes, Jewett goes too, most recently working at a store in Chicago for a couple of days.

One other factor has helped Jewett and his IT team execute the complex revamp: They've used one consulting company, Ironworks, from the start of the project, with good results. (Ironworks, known best regionally, has offices in Virginia and North Carolina, where Family Dollar is based.)

"They're an expert in process," Jewett says. "Yes, they bring tech skills to the table. But they're helping us structure these efforts." How has he made the consulting relationship work over time? Pick a partner with whom you have good chemistry and, as CIO, get to know the consulting team personally early on. Jewett says, adding: "Being a known customer is very important. People get into the trap of the first call you make being about a problem."

Gross Profit Margin Rising

Is the Store of the Future revamp making a significant contribution to the chain's bottom line?

It's pretty early to judge, but according to fiscal 2007 results reported by the company in early October, Family Dollar's gross revenue is trending up: That's a good sign in what's now a tough economic climate in its market, with rising energy and gas prices, and the subprime mortgage crunch, Jewett says. Family Dollar's gross profit margin, as a percentage of sales, was 34 percent in fiscal 2007 compared to 33.1 percent in fiscal 2006. Sales in comparable stores (stores open at least one year) increased approximately 0.9 percent, according to the company.