CarMax 2007 Annual Report Download - page 23

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13
Item 2. Properties.
We conduct our used vehicle operations in three basic retail formats – mega, standard, and satellite superstores. Our
current growth plan primarily includes the construction of standard superstores and satellite superstores. Standard
superstores are generally 40,000 to 60,000 square feet on 10 to 25 acres. Satellite superstores are generally 10,000
to 20,000 square feet on 4 to 10 acres. Mega superstores are approximately 70,000 to 95,000 square feet on 20 to 35
acres.
STORES AS OF FEBRUARY 28, 2007
Used Car Superstores
Mega
Standard(2)
Satellite(2)
Co-Located
New Car
Stores (1)
Total
Alabama............................................................................................ — 1 — — 1
California.......................................................................................... 1 4 3 1 9
Connecticut....................................................................................... — 1 1 — 2
Florida............................................................................................... 3 4 3 1 11
Georgia ............................................................................................. 1 2 1 — 4
Illinois............................................................................................... 3 1 2 — 6
Indiana .............................................................................................. — 1 1 — 2
Kansas............................................................................................... — 2 — — 2
Kentucky........................................................................................... — 1 — — 1
Maryland........................................................................................... 1 1 1 1 4
Missouri............................................................................................ — — 1 — 1
Nevada.............................................................................................. — 1 1 — 2
New Mexico ..................................................................................... — 1 — — 1
North Carolina .................................................................................. — 3 3 — 6
Ohio .................................................................................................. — 1 1 — 2
Oklahoma ......................................................................................... — 1 — — 1
South Carolina.................................................................................. — 2 — — 2
Tennessee ......................................................................................... — 3 1 — 4
Texas ................................................................................................ 4 4 3 — 11
Utah .................................................................................................. — 1 — — 1
Virginia............................................................................................. — 4 2 — 6
Wisconsin ......................................................................................... — 1 — 1 2
Total.................................................................................................. 13 40 24 4 81
(1) We currently operate seven new car franchises. Two franchises are integrated within used car superstores and do not
operate as separate stores. The remaining five franchises are operated from four new car stores that are co-located with
used car superstores.
(2) The Kenosha, Wis. superstore has been reclassified from a satellite to a standard superstore.
We have financed the majority of our stores through sale-leaseback transactions. As of February 28, 2007, we
leased 61 of our 81 retail stores and owned the remaining 20 stores. We also own our home office building in
Richmond, Va., and land associated with planned future store openings.
Expansion
We believe that we are well positioned to succeed in the highly competitive automotive retail industry. We have
built a strong foundation for future growth based upon our unique knowledge of the used car market, established
presence in key locations, and ability to execute our business plan in a market subject to continuous change. We
continue to refine our operating strategies and have grown to be the nation’ s largest retailer of used cars.
Specifically, we have enhanced our ability to identify profitable markets and determine the appropriate store formats
to fit those markets.
We plan to open superstores at an annual rate of approximately 15% to 20% of our used car superstore base. In
fiscal 2008, we plan to open approximately 13 superstores, including 5 standard-sized superstores and 8 satellite
superstores, expanding our store base by 17%. Our fiscal 2008 expansion plans are largely focused on opening
standard superstores in new mid-sized markets and satellite superstores in existing markets. We generally define