Lumber Liquidators 2009 Annual Report Download - page 4

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•Product Allocation and Logistics. We continued to build our team of retail professionals, strengthened
allocation controls and launched certain initiatives including our China consolidation center program.
We were very pleased with the results of this program in 2009, and expect it to grow in volume
throughout 2010 as additional stores and products are added.
•Integrated Technology Investment. We began the implementation process of our integrated
information technology solution. This initiative will enable us to continue to improve our product
planning, allocation and distribution. In addition, we believe that it will enhance our communication
capabilities across our entire organization which, in turn, will help us deliver an even better overall
customer shopping experience in the future.
•Merchandise Inventories Commitment. In the second half of 2009, we implemented our “never out of
stock” program to ensure that a selection of top selling products are in-stock at each store location in
sufficient quantity at all times. We believe this program further enhances our value proposition and will
help us to continue to capture market share going forward. We look forward to distancing ourselves
from the competition as we become more efficient in implementing our “never out of stock” program in
2010.
Foundation for Long-Term Growth
We believe the strategic initiatives that we have executed over the past year will continue to benefit the
business for years to come. While economic challenges remain, we are excited about the opportunities in 2010.
Our wide selection of hardwood flooring, laminates, bamboo, moldings and accessories coupled with our
exceptional value proposition puts us at the top of the list for new and existing homeowners looking for value
when upgrading or remodeling their homes.
We are confident that our solid capital structure and debt-free balance sheet will continue to provide us with
the flexibility needed to execute our growth plans in 2010 and beyond. Throughout 2010, we anticipate opening
36 to 40 new stores, in both new and existing markets, which we believe will allow us to continue gaining share
in the highly fragmented wood flooring market.
We look forward to continuing our trajectory of sustained, long-term growth as we further strengthen our
business model and gain additional market share. As always, we appreciate the ongoing support of our customers,
shareholders, vendors and employees, and we look forward to continuing this journey together.
Tom Sullivan Jeffrey Griffiths
Founder and Chairman of the Board President and Chief Executive Officer