Big Lots 2008 Annual Report Download - page 78

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10
If we are unable to successfully execute our SAP® for Retail system implementation, our operations may be
disrupted or become less efficient.
In January 2008, we announced our plans to implement SAP® for Retail solutions over the next few years.
New financial systems, including general ledger, accounts payable and fixed assets, were under development
during 2008 and are planned for continued development and testing in 2009. We expect to place the new
financial systems in service in 2010. A new core merchandising system is planned for development in 2009 and
development and testing in 2010, with plans to place the new core merchandising system in service in 2011. The
implementation of these systems is expected to have a pervasive impact on our information systems and across
a significant portion of our general office operations, including merchandising, technology, and finance. If we
are unable to successfully implement SAP® for Retail, it may have an adverse effect on our capital resources,
financial condition, results of operations, and liquidity.
If we are unable to retain suitable store locations under favorable lease terms, our financial performance
may be negatively affected.
We lease almost all of our stores and a significant number of these leases expire or are up for renewal each year.
Our strategy to improve our financial performance includes sales growth while managing the occupancy cost of
each of our stores. If we are not able to negotiate favorable lease renewals, including the proper determination of
which leases to renew, our financial position, results of operations, and liquidity may be negatively affected.
If we are unable to secure customer, employee, and company data, our reputation could be damaged and we
could be subject to penalties or lawsuits.
The protection of our customer, employee, and company data is critical to us. The regulatory environment
surrounding information security and privacy is increasingly demanding, with frequent imposition of new and
constantly changing requirements across our business. In addition, our customers have a high expectation that
we will adequately protect their personal information. A significant breach of customer, employee, or company
data could damage our reputation and result in lost sales, fines, and/or lawsuits.
If we lose key personnel, it may have a material adverse impact on our future results of operations.
We believe that we benefit substantially from the leadership and experience of our senior executives. The loss of
services of any of these individuals could have a material adverse impact on our business. Competition for key
personnel in the retail industry is intense and our future success will also depend on our ability to recruit, train,
and retain our senior executives and other qualified personnel.
The price of our common shares as traded on the New York Stock Exchange may be volatile.
Our stock price may fluctuate substantially as a result of factors beyond our control, including but not limited
to, general economic and stock market conditions, risks relating to our business and industry as discussed
above, strategic actions by us or our competitors, variations in our quarterly operating performance, our future
sales or purchases of our common shares, and investor perceptions of the investment opportunity associated
with our common shares relative to other investment alternatives.
We also may be subject to a number of other factors which may, individually or in the aggregate, materially
or adversely affect our business. These factors include, but are not limited to:
• Events or circumstances could occur which could create bad publicity for us or for types of
merchandise offered in our stores which may negatively impact our business results including sales;
• Infringement of our intellectual property, including the Big Lots trademarks, could dilute our value;
• Our ability to attract and retain suitable employees;
• Our ability to establish effective advertising, marketing, and promotional programs; and
• Other risks described from time to time in our filings with the SEC.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.