Big Lots 2007 Annual Report Download - page 99

11
The price of our common shares as traded on the New York Stock Exchange may be volatile.
Our stock price may fluctuate substantially as a result of factors beyond our control, including but not limited to,
general economic and stock market conditions, risks relating to our business and industry as discussed above,
strategic actions by us or our competitors, variations in our quarterly operating performance, our future sales
or purchases of our common shares, and investor perceptions of the investment opportunity associated with our
common shares relative to other investment alternatives.
We also may be subject to a number of other factors which may individually or in the aggregate, materially
or adversely affect our business. These factors include, but are not limited to:
• The effect of fuel price fluctuations on our transportation costs and customer purchases;
• Events or circumstances could occur which could create bad publicity for us or for types of
merchandise offered in our stores which may negatively impact our business results including sales;
• Infringement of our intellectual property, including the Big Lots trademarks, could dilute our value;
• Our ability to attract and retain suitable employees;
• Our ability to establish effective advertising, marketing, and promotional programs; and
• Other risks described from time to time in our filings with the SEC.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Retail Operations
All of our stores are located in the United States, predominantly in strip shopping centers, and have an average
store size of approximately 29,700 square feet, of which an average of 21,400 square feet is selling square feet.
The average cost to open a new store in a leased facility during 2007 was approximately $1.0 million, including
cost of inventory.
Except for 52 owned sites, all of our stores are leased. Store leases generally obligate us for fixed monthly
rental payments plus the payment, in most cases, of our applicable portion of real estate taxes, common area
maintenance costs (“CAM”), and property insurance. In some leases, formulas require the payment of a
percentage of sales in addition to minimum rent. Such payments generally are required only when sales exceed a
specified level. Our typical store lease is for an initial minimum term of five to 10 years with multiple five-year
renewal options. Fifty-one store leases have sales termination clauses which can result in our exiting a location
at our option if certain sales volume results are not achieved.
The 52 owned stores are located in the following states:
State
Stores
Owned
Arizona .................................... 2
California .................................. 38
Colorado ................................... 3
Florida ..................................... 2
Louisiana ................................... 1
New Mexico ................................ 2
Ohio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Texas ...................................... 3
Total .................................... 52