Build-A-Bear Workshop 2011 Annual Report Download - page 8

...and still counting
space. I am confident this new design will enhance our fun
experience, connect us even more with our Guests, continue
our leadership role in experiential retail, and ultimately drive
store traffic and sales. Our first newly designed store will open
in the Fall of 2012.
4. REINFORCE BUILD-A-BEAR WORKSHOP® AS
THE TOP DESTINATION FOR GIFTS.
Throughout 2012, we will invite our associates and our Guests
to cele-bear-ate their contributions to two major milestones,
our 15th Birthday and over 100 million best friends made.
We will leverage the celebration of these milestones as an
opportunity to increase sales of our gifting business, both in
store and online. The number one gift occasion for Build-A-Bear
Workshop is someone’s birthday — Guests have made coming
to our store for their birthdays an annual event and we are
using our own 15th birthday to take gift giving to an entirely
new level, grow our gift card sales and reenergize our party
program. We have scheduled events throughout the year that
will help us drive incremental visit occasions and add lots of
FUN — for our Guests and our associates!
5. INCREASE OUR GLOBAL PRESENCE.
We will also continue to build our global presence by
colla-bear-ating with our franchisees who deliver the signature
Build-A-Bear Workshop brand experience around the world
and by adding new countries of operation to our portfolio.
In fiscal 2011, our international franchisees grew their store
base by 25 percent, net of closures, finishing the year with
79 stores. In 2012, our franchisees plan to open an additional
ten to twelve locations, net of closures. We are also working
with our franchisees to improve their cost structure on both
product and logistics. Build-A-Bear
Workshop has been on the
forefront of international growth
and we are putting the support
and infrastructure in place to
continue this expansion and
our overall success.
6. IMPROVE COST EFFICIENCIES.
We must drive our business by
increasing sales, but we also
challenge ourselves every day on
expenses. In 2011, we began our
current cost savings program and
realized $3 million in savings.
We anticipate an additional $9 million in savings in 2012
as the initiatives are annualized, a portion of which will
offset expected product cost increases and support sales-
driving marketing initiatives. We achieved savings in store
and World Bearquarters expenses, cost of goods sold,
primarily through freight and product-related costs, and
reduced store payroll. The processes that are driving our
current savings will continue to focus our organization on
improving efficiencies.
We are excited about our growth strategies and are confident
they will enable us to increase our sales and profitability and
drive long term value for all Build-A-Bear Workshop stakeholders.
We are inspired by the more than 100 million friends that
have been made and are equally motivated to grow and find
meaning in all of the future friendships that will be made.
I would like to thank each of our associates for your dedicated
commitment. Thanks to our pawsome Guests for sharing your
smiles, your stories and your love of our beary special brand.
I also want to recognize the contribution of our Board of
Directors and thank you for your support. And finally, thanks
to you, our shareholders, for continuing to believe in the power
of the teddy bear spirit and the future of our company.
Beary Best Regards,
Maxine Clark
Founder and Chief Executive Bear
March 23, 2012
2008
HOLLY & HAL MOOSE™
The debut of our first story
book featuring our characters.
2009
“HOLLY & HAL MOOSE:
OUR UPLIFTING CHRISTMAS
ADVENTURE”
Was turned into an
animated movie
2010
GOING MOBILE
The Build-A-Bear® App launched
on iTunes allowing Guests to stay
in the know even on the go!
2012
FRIENDS COUNT
Cele-bear-ating 15 years of
love, hugs and smiles and
over 100 million friends made
4
2011
Over 100
million furry
friends sold
2006
Over 50
million furry
friends sold