Big Lots 2011 Annual Report Download - page 118

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closeout merchandise at lower prices than those offered by traditional discount retailers. We attempt to
maximize the amount of closeout merchandise available in our stores. We work closely with our vendors
to obtain name brand merchandise that is easily recognizable by our customers. In addition to closeout
merchandise, we stock many products on a consistent basis at our stores that we believe provide great value to
our customers. These recurring products may not always be the same brand or may be off-brand because we
attempt to provide our customers with merchandise at a price that we believe represents a great value. For net
sales by merchandise category and as a percent of total net sales, see the discussion below under the captions
“2011 Compared To 2010” and “2010 Compared To 2009” in “Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations” (“MD&A”) of this Form 10-K.
Real Estate
The following table compares the number of our stores in operation, by segment, at the beginning and end of
each of the last five fiscal years:
2011 2010 2009 2008 2007
U.S.
Stores open at the beginning of the year ............... 1,398 1,361 1,339 1,353 1,375
Stores opened during the year ....................... 92 80 52 21 7
Stores acquired during the year ...................... —————
Stores closed during the year ........................ (39) (43) (30) (35) (29)
Stores open at the end of the year.................. 1,451 1,398 1,361 1,339 1,353
Canada
Stores open at the beginning of the year ............... — — — — —
Stores opened during the year ....................... — — — — —
Stores acquired during the year ...................... 89 — — — —
Stores closed during the year ........................ (7) — — — —
Stores open at the end of the year.................. 82 — — — —
Consolidated
Stores open at the beginning of the year ............... 1,398 1,361 1,339 1,353 1,375
Stores opened during the year ....................... 92 80 52 21 7
Stores acquired during the year ...................... 89 — — — —
Stores closed during the year ........................ (46) (43) (30) (35) (29)
Stores open at the end of the year.................. 1,533 1,398 1,361 1,339 1,353
During 2009, the U.S. commercial real estate market softened and, as a result, we successfully negotiated
a number of new store leases as the availability of space improved, rental rates eased, and our sales and
profitability improved at the store level. This trend continued into 2010. In addition, during 2009 and 2010, we
were able to favorably negotiate renewals for certain store leases which, prior to 2009, may have resulted in
store closures. In 2011, we continued our new store expansion activities in the U.S., and also acquired 89 stores
in Canada as the result of our acquisition of Liquidation World Inc. For additional information about our real
estate strategy, see the discussion under the caption “Operating Strategy - Real Estate” in the accompanying
MD&A in this Form 10-K.