Big Lots 2010 Annual Report Download - page 76

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to obtain name brand merchandise that is easily recognizable by our customers. In addition to closeout
merchandise, we stock many products on a consistent basis at our stores that we believe provide great value to
our customers. This merchandise may not always be the same brand or may be off-brand because we attempt
to provide our customers with merchandise at a price that we believe represents a great value. For net sales by
merchandise category and as a percent of total net sales, see the discussion below under the captions “2010
Compared To 2009” and “2009 Compared To 2008” in “Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations” (“MD&A”) of this Form 10-K.
Real Estate
The following table compares the number of our stores in operation at the beginning and end of each of the last
five fiscal years:
2010 2009 2008 2007 2006
Stores open at the beginning of the year . . . . . . . . . . . . . . . . . . 1,361 1,339 1,353 1,375 1,401
Stores opened during the year . . . . . . . . . . . . . . . . . . . . . . . . . . 80 52 21 7 11
Stores closed during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . (43) (30) (35) (29) (37)
Stores open at the end of the year ..................... 1,398 1,361 1,339 1,353 1,375
From 2006 through 2008, we focused on improving profitability through managing our existing store base
as the commercial real estate market demanded higher rent charges than our store operating model enabled
us to pay. During 2009, the commercial real estate market softened and, as a result, we have been able to
favorably negotiate renewals for certain store leases which, prior to 2009, may have resulted in store closures.
In addition, during 2009 and 2010, we successfully negotiated a number of new store leases as the availability
of space improved, rental rates eased, and our sales and profitability improved at the store level. For additional
information about our real estate strategy, see the discussion under the caption “Operating Strategy - Real
Estate” in the accompanying MD&A in this Form 10-K.
The following table details our stores by state at January 29, 2011:
Alabama . . . . . . . . 27 Maine . . . . . . . . . . 7 Ohio. . . . . . . . . . . . . 103
Arizona ......... 36 Maryland ........ 17 Oklahoma ........ 17
Arkansas ........ 11 Massachusetts .... 18 Oregon .......... 13
California . . . . . . . 172 Michigan ........ 43 Pennsylvania ...... 68
Colorado ........ 20 Minnesota ....... 4 Rhode Island ...... 1
Connecticut ...... 11 Mississippi . . . . . . 14 South Carolina . . . . 34
Delaware ........ 4 Missouri . . . . . . . . 25 South Dakota . . . . . 1
Florida .......... 107 Montana ........ 1 Tennessee ........ 47
Georgia . . . . . . . . . 59 Nebraska ........ 4 Texas ............ 114
Idaho ........... 6 Nevada ......... 13 Utah ............. 10
Illinois .......... 35 New Hampshire . . 6 Ver mont ......... 4
Indiana ......... 45 New Jersey . . . . . . 14 Virginia .......... 35
Iowa ............ 3 New Mexico . . . . . 12 Washington ....... 21
Kansas .......... 9 New York . . . . . . . 48 West Virginia . . . . . 18
Kentucky ........ 40 North Carolina . . . 65 Wisconsin ........ 10
Louisiana ........ 22 North Dakota . . . . 2 Wyoming ......... 2
Total stores ....... 1,398
Number of states . . 48
Of our 1,398 stores, 35% operate in four states: California, Texas, Ohio, and Florida, and net sales from stores in
these states represented 37% of our 2010 net sales.