Hibbett Sports 2007 Annual Report Download - page 18

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- 6 -
continually search for ways to improve efficiencies through information system upgrades, such as the JDA
Merchandising System we implemented beginning February 4, 2007.
We strive to hire enthusiastic sales personnel with an interest in sports. Our extensive training program focuses
on product knowledge and selling skills and is conducted through the use of in-store clinics, videos, self-study courses,
interactive group discussions and “Hibbett University” designed specifically for store management.
Our Store Concepts
Hibbett Sports
Our primary retail format is Hibbett Sports, a 5,000 square foot store located in enclosed malls or in strip
centers which are generally the center of commerce within the area and which are usually anchored by a Wal-Mart
store. We tailor our Hibbett Sports stores to the size, demographics and competitive conditions of each market. Of these
stores, 202 Hibbett Sports stores are located in enclosed malls, the majority of which are the only enclosed malls in the
county, and the remaining 391 stores are located in strip centers.
Hibbett Sports stores offer a core selection of quality, brand name merchandise with an emphasis on team
sports. This merchandise mix is complemented by a selection of localized apparel and accessories designed to appeal
to a wide range of customers within each market. We strive to respond quickly to major sporting events of local interest.
Such events in fiscal 2007 included the Florida Gator’s NCAA Basketball Championship and victory in the Bowl
Championship Series (“BCS”) national championship game as well as the turn-around seasons of the Dallas Cowboys
and New Orleans Saints.
Sports Additions
Our sixteen Sports Additions stores are small, mall-based stores, averaging 2,300 square feet with
approximately 90% of merchandise consisting of athletic footwear and the remainder consisting of caps and a limited
assortment of apparel. Sports Additions stores offer a broader assortment of athletic footwear, with a greater emphasis
on fashion than the athletic footwear assortment offered by Hibbett Sports stores. All but five Sports Additions stores are
currently located in malls in which Hibbett Sports stores are also present.
Sports & Co.
We opened four Sports & Co. superstores between March 1995 and September 1996. Sports & Co.
superstores average 25,000 square feet and offer a broader assortment of athletic footwear, apparel and equipment
than Hibbett Sports stores. Athletic equipment and apparel represent a higher percentage of the overall merchandise
mix at Sports & Co. superstores than they do at Hibbett Sports stores. Sports & Co. superstores are designed to project
the same in-store atmosphere as Hibbett Sports stores but on a larger scale. Management strategy does not include
opening any superstores in the future.
Team Sales
Hibbett Team Sales, Inc. (“Team Sales”), a wholly-owned subsidiary of the Company, is a leading supplier of
customized athletic apparel, equipment and footwear to school, athletic and youth programs primarily in Alabama. Team
Sales sells its merchandise directly to educational institutions and youth associations. The operations of Team Sales are
independent of the operations of our retail stores. Team Sales does not meet the quantitative or qualitative reporting
requirements of the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards
(“SFAS”) No. 131, “Disclosures About Segments of an Enterprise and Related Information.”
Our Expansion Strategy
In fiscal 1994, we began to accelerate our rate of new store openings to take advantage of the growth
opportunities in our target markets. We have currently identified approximately 400 potential markets for future Hibbett
Sports stores generally within the states in which we operate. Our clustered expansion program, which calls for opening
new stores within a two-hour driving distance of an existing Hibbett location, allows us to take advantage of efficiencies
in distribution, marketing and regional management. We believe our current distribution center can support
approximately 850 stores.
In evaluating potential markets, we consider population, economic conditions, local competitive dynamics and
availability of suitable real estate. Hibbett Sports stores effectively operate in both enclosed mall and in strip center
locations, which are generally the center of commerce within the area and which are usually anchored by a Wal-Mart
store.