Big Lots 2011 Annual Report Download - page 5

“Do what you said you were going
to do.” It seems like such a simple
concept, and yet it’s so incredibly
important in business, and in life
for that matter. It is the key to
building credibility with others and
developing accountability within an
organization. And, it has been the
foundation of everything we've done
during my tenure at Big Lots.
Six years ago, we launched our
“What’s Important Now” or
WIN strategy… a multiyear plan
to transform our company with
an intense focus on improving
merchandise, real estate, and
operating expense levels.
I’ve consistently used this letter as an
opportunity to provide an update on
our journey. In essence, I’ve been
holding our team accountable for
what we said we were going to do.
We’ve come a long way since 2005,
and by many measures, 2011 was
another record year. Our success has
led to job creation, investments for
the future, significant financial gains,
and returning cash to shareholders.
Big Lots is becoming the company we
want it to be. A company that grows
by delivering value to our customers
and shareholders… a company
agile enough to take advantage of
international opportunities… and
a company that acts responsibly
toward associates who are proud to
work and grow here.
But the journey is far from over. In
fact, you could say we’re just getting
to the BIG ideas.
GROWTH IS THE KEY
Not many companies can say
it these days, but WE ARE IN A
GROWTH MODE. We’re growing
organically… we’re growing
geographically… we’re growing
organizationally… and often growth
in one area leads to growth in
another. Let me touch on some of the
highlights from 2011:
Organic Growth: Our business has
always been about the treasure hunt
and the excitement that stems from
what we have in our stores. Last year
I noted the importance of “continual
change” in retail and highlighted
the Consumables category as an
example where we weren’t changing
fast enough or presenting newness
or value.
As promised, we focused on
this category in 2011 and
made significant improvements
which translated into meaningful
sales growth. We changed the
organization, adding new talent
and new perspectives to our
merchandising team. We expanded
our vendor base by introducing
several new, high-quality brands.
We sharpened our product
offering with our Fresh Finds™
private label program and
expansion of our international
foods program. And we improved
the in-store marketing and
presentation of our products with
our Wall of Values merchandise
sets and Extreme Value pricing.
These improvements resonated
with consumers and generated
shopping excitement.
Our success
has led to
job creation,
investments
for the
future, and
significant
financial gains.
DEAR SHAREHOLDERS:
Steven S. Fishman
Chairman, CEO and President
2011 BIG LOTS, INC. ANNUAL REPORT