Build-A-Bear Workshop 2009 Annual Report Download - page 8

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BUILD-A-BEAR WORKSHOP, INC. LETTER TO SHAREHOLDERS
4
While we have made signifi cant reductions in our
marketing spend to meet our cost savings goals, we
are reallocating, using traditional and new media to
create a sense of urgency and increased call to action.
Our third strategy is to give people more
reasons to come to Build-A-Bear Workshop®!
We are expanding our leadership in the
experiential toy business with products that
reinforce our brand values and broaden
our appeal.
Our fi rst such expansion was Zhu Zhu Pets™ —
2009 Toy of the Year by the Toy Industry Association
— and a perfect example of a toy that complements
our brand and product line. In addition to products
sold at other locations, we will soon carry exclusive
items, which tie into Build-A-Bearville® to engage
Zhu Zhu shoppers even further with our brand.
We are being very strategic and closely monitoring
our Guest reaction, sales metrics and overall results.
So far, the average transaction with Zhu Zhu Pets
product has been consistent with our historical average
transaction. While merchandise margin for this product
range has been below our own animals, we expect
to drive higher overall profi t dollars and enhance our
bottom line.
Our fourth strategy is to make it easier for adults to
shop at buildabear.com® and even more engaging
for kids to play in Build-A-Bearville.
We began a positive web sales trend in
December 2009 that has continued into 2010.
To capitalize on this forward momentum, we plan
to make buildabear.com easier to navigate, shop,
and fi nd the perfect gift for every occasion.
In our virtual world, we will focus on increasing
membership, look for new ways to monetize the site
to increase store revenue and sell virtual goods, and
develop a deeper relationship with our brand.
Our research has shown that one out of every three
Guests visit Build-A-Bearville before visiting our store.
Over 40 percent of all animals registered in our stores
by girls aged eight to 11 are brought to life online
in Build-A-Bearville. Traffi c to Build-A-Bearville rose
throughout 2009 and that trend has continued in 2010.
We are confi dent that
going into 2010 our brand
is strong and well positioned
in consumers’ minds.