Build-A-Bear Workshop 2009 Annual Report Download - page 7

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BUILD-A-BEAR WORKSHOP, INC. LETTER TO SHAREHOLDERS
3
In 2009, we focused on improving our sales trends by
showing Moms and kids that Build-A-Bear Workshop® is
an affordable, fun and creative place to go. At a time
when families were making fewer trips to the mall, we
focused our marketing and events around times when
kids were out of school to capitalize on mall traffi c.
Also, knowing that kids were not able to come to the
mall as often, we kept them engaged in our brand
through our virtual world buildabearville.com.
®
We are confi dent that going into 2010 our brand
is strong and well positioned in consumers’ minds.
Where we are headed in 2010
Let me walk you through our fi ve key strategies for
this year:
First, we will increase the sales impact of our new
products with larger launches, increased in-store
excitement and heightened visual presence.
While we will introduce a similar total number
of new animals as in 2009, we will engage our
Guests through storytelling and collection building.
For example, in April our stores will transform into
an enchanted kingdom to showcase our new dragon
and pony collection. Guests receive a crown, are
“knighted,” hear “announcements from the joust”
over our in-store radio and more fun. Our Guests and
our stuffed animal friends become part of the story.
These stories will be created at key times throughout
the year with innovative products, larger-than-life
signage, music and sound effects, and increased
interactivity. As a result, each launch is expected to
have higher impact as we focus our inventory and
improve price points to drive margin and average
transaction amount.
Our second strategy is to increase conversion
and grow transactions with fully aligned product,
marketing and operations teams.
In addition to in-store and product components, we
will focus our media and marketing efforts on these
collections with a two-pronged approach. We will
get kids wanting and talking about our latest hot
products. We will show Moms our value and give
them a chance to be heroes and say YES about
a visit to Build-A-Bear Workshop.
We ended the year with a
strong balance sheet that
included $60.4 million in cash,
an 11.3 percent reduction in
inventory per square foot and
we maintained a debt free
balance sheet.