Pottery Barn 2013 Annual Report Download - page 34

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to replace. If any one of our key employees leaves, is seriously injured or unable to work, or fails to perform and
we are unable to find a qualified replacement, we may be unable to execute our business strategy. We may not be
successful in recruiting, retaining and motivating skilled personnel domestically or globally who have the
requisite experience to achieve our business goals across the globe.
In addition, our main offices are located in the San Francisco Bay Area, where competition for personnel with
retail and technology skills can be intense. If we fail to identify, attract, retain and motivate these skilled
personnel, our business may be harmed. Further, in the event we need to hire additional personnel, we may
experience difficulties in attracting and successfully hiring such individuals due to competition for highly skilled
personnel, as well as the significantly higher cost of living expenses in our market.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We lease store locations, distribution centers, corporate facilities and customer care centers for our U.S. and
foreign operations for original terms ranging generally from 3 to 22 years. Certain leases contain renewal options
for periods of up to 20 years.
For our store locations, our gross leased store space, as of February 2, 2014, totaled approximately
5,838,000 square feet for 585 stores compared to approximately 5,778,000 square feet for 581 stores as of
February 3, 2013.
Leased Properties
The following table summarizes the location and size of our leased distribution centers, corporate facilities and
customer care centers occupied as of February 2, 2014:
Location Occupied Square Footage (Approximate)
Distribution Centers
Olive Branch, Mississippi 2,105,000
South Brunswick, New Jersey 1,854,000
City of Industry, California 1,180,000
Memphis, Tennessee11,023,000
Claremont, North Carolina 412,000
Other 346,000
Corporate Facilities
Brisbane, California 194,000
New York City, New York 105,000
Portland, Oregon 103,000
San Francisco, California 13,000
Customer Care Centers
Las Vegas, Nevada 36,000
Oklahoma City, Oklahoma 36,000
Other 26,000
1See Note F to our Consolidated Financial Statements for more information.
In February 2014, we entered into an 11 year agreement to lease 822,000 square feet of distribution facility space
in Arlington, Texas, which we will begin occupying in fiscal 2014. This square footage is not included in the
table above.
20