Build-A-Bear Workshop 2012 Annual Report Download - page 7

3
group, overall sales have exceeded
expectations, increasing an average
of 30 percent. We remain on track
to remodel 40 to 50 locations in this
new store format by the end of 2014.
2. Improve store productivity and
profitability — During the year, we
closed ten stores, transferring an
average of 20 percent of those sales
to other stores in the same markets.
We also reduced the square footage
of 11 other stores by remodeling
and moving them to smaller locations
within the same malls. In 2013 and
2014, we expect to close 50 to
60 additional stores and transfer
a portion of their sales to remaining
stores. By the end of 2014, we will
operate fewer stores, but expect those
stores to have higher sales and profits
which will improve our sales per
square foot by at least 25 percent.
3. Increase shopping frequency
— We reintroduced brand-building
TV advertising in our United States
markets beginning in mid-October to
drive traffic, further engage existing
Guests and attract new Guests to
our stores. This contributed to a
significant improvement in trend with
comparable store sales increasing
2.4 percent in the United States in
the fourth quarter as well as showing
an ongoing benefit into the start of
2013. We will continue to rebalance
our marketing efforts to emphasize
our brand experience as we
move forward.
Operationally, we are committed to
delivering a WOW Guest experience
whenever someone shops in one of
our stores, so that they will return
again and again. In 2012, our Guest
satisfaction scores again exceeded
80 percent of all those surveyed
giving us the highest rating, a
significant accomplishment by
all standards.
4. Reinforce Build-A-Bear Workshop
as a top destination for gifts — We
moved our gifting program forward,
particularly in the fourth quarter when
our gift card sales increased by over
30 percent on a consolidated basis.
Our brand advertising contributed
to this growth by prompting parents
and other relatives to give the gift of
our interactive experience. This has
contributed to higher redemption
levels in 2013.
5. Increase our global presence
— Our franchisees finished the
2012 fiscal year with 91 stores
in 14 countries in addition to our
company-owned operations in
TOTAL REVENUE
(dollars in millions)
COMPANY PROFILE
Build-A-Bear Workshop, Inc. is the only global company that offers an interactive make-your-own stuffed animal retail-entertainment experience. There
are more than 400 Build-A-Bear Workshop stores worldwide, including company-owned stores in the United States, Puerto Rico, Canada, the
UnitedKingdom and Ireland, and franchise stores in Europe, Asia, Australia, Africa, the Middle East, Mexico and South America. Founded in St.Louis
in 1997, Build-A-Bear Workshop is the leader in interactive entertainment retail. Brands include make-your-own Major League Baseball® mascot in our
stadium location, and Build-A-Dino® stores. Build-A-Bear Workshop extends its in-store interactive experience online with its award winning virtual
world website at bearville.com™ . The company was named to the FORTUNE 100 Best Companies to Work For® list for the fifth year in a row in 2013.
Build-A-Bear Workshop (NYSE: BBW) posted total revenue of $380.9 million in fiscal 2012. For more information, call 888.560.BEAR (2327) or visit
the company’s award-winning website at buildabear.com®
.
NUMBER OF COMPANY-OWNED STORES
(at end of period)
380.9
394.4
401.5
395.9
468.3
1211100908
351
356
359
350
351
1211100908