Big Lots 2011 Annual Report Download - page 129

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ITEM 2. PROPERTIES
Retail Operations
All of our stores are located in North America, predominantly in strip shopping centers, and have an average store
size of approximately 29,900 square feet, of which an average of 21,600 square feet is selling square feet. The
average cost to open a new store in a leased facility during 2011 was approximately $1.2 million, including cost
of inventory. Except for 54 owned sites in our U.S. segment, all of our stores are leased. In 2011, we acquired one
store property for $2.5 million. The associated store has not yet opened for operation, and therefore is excluded
from our store counts at January 28, 2012. The 54 owned stores are located in the following states:
State Stores Owned
Arizona .................................... 3
California .................................. 39
Colorado ................................... 3
Florida ..................................... 2
Louisiana ................................... 1
New Mexico ................................ 2
Ohio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Texas ...................................... 3
Total................................... 54
Store leases generally obligate us for fixed monthly rental payments plus the payment, in most cases, of our
applicable portion of real estate taxes, common area maintenance costs (“CAM”), and property insurance. Some
leases require the payment of a percentage of sales in addition to minimum rent. Such payments generally are
required only when sales exceed a specified level. Our typical store lease is for an initial minimum term of five
to ten years with multiple five-year renewal options. Eighty store leases have sales termination clauses which
can result in our exiting a location at our option if certain sales volume results are not achieved.
The following table summarizes the number of store lease expirations in each of the next five fiscal years
and the total thereafter. In addition, as stated above, many of our store leases have renewal options. The table
also includes the number of leases that are scheduled to expire each year that do not have a renewal option.
The information includes stores with more than one lease and leases for stores not yet open. It excludes
15 month-to-month leases and 54 owned locations.
Fiscal Year: Expiring Leases
Leases
Without
Options
2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 39
2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 41
2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 31
2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229 27
2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 35
Thereafter .................................. 208 8
Warehouse and Distribution
At January 28, 2012, we owned or leased approximately 9.4 million square feet of distribution center and
warehouse space. We own and operate five regional distribution centers strategically placed across the United
States in Ohio, California, Alabama, Oklahoma, and Pennsylvania. We lease and operate two regional distribution
centers in Canada located in British Columbia and Ontario. The regional distribution centers in our U.S. segment
utilize warehouse management technology, which enables high accuracy and efficient processing of merchandise
from vendors to our retail stores. The combined output of our regional distribution centers was approximately
2.7 million cartons per week in 2011. Certain vendors deliver merchandise directly to our stores when it supports
our operational goal to move merchandise from our vendors to the sales floor in the most efficient manner.