Big Lots 2011 Annual Report Download - page 139

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may fluctuate based on customer demand and the availability of compelling deals that we are able to acquire.
Strategically, we anticipate that opportunities exist to continue to grow the basket through the same successful
initiatives that benefited results over the last few years.
Our marketing efforts involve a mix of printed circulars, in-store marketing, television, email and online
advertising. Much of our marketing is based on information that we have learned about our customers,
principally through customer surveys and information gathered through our rewards program. Based on this
information, we believe over 70% of our core customers come to our stores without a shopping list or without a
specific item or brand in mind to purchase. We believe value dominates top of mind awareness as our customers
look to us for savings. In 2011, we made investments to improve our in-store signage and merchandising
displays, with a focus on our comparative pricing to competitors. We expect to continue to develop these efforts
in 2012.
We continue to market to our Buzz Club members, by offering a free online membership and alerting them to
new merchandise and offerings in our stores. In 2009, we launched our Buzz Club Rewards program, which is
our first true loyalty card program. After enrolling in the Buzz Club Rewards program, the customer receives
a loyalty card which may be presented and scanned at the register at time of purchase. After making the
required number of qualifying purchases, the Buzz Club Rewards member earns a coupon on their account for
a future discount in our stores. Additionally, members may receive marketing information and other targeted
promotional materials.
From a marketing perspective in 2012, there are four primary programs designed to continue to grow sales:
• First, using our printed advertising circulars and promotional pricing to create excitement
surrounding the deals that we offer. The excitement created by such deals is predominantly achieved
through price but the uniqueness of an item may also be a factor.
• Second, through the use of television commercials displayed nationwide on both national and cable
networks, we will promote our brand and, from time to time, promote items or special discounts in
our stores.
• Next, our signage initiatives that focus on value and extreme price savings are designed to continue
our effort to reinforce our niche in low everyday price retailing.
• Finally, the use of our Buzz Club Rewards program is a key driver to furthering our focus on
our core shoppers and expanding our customer base. We believe we are gaining insights about
communication with this customer segment and will increase our digital communication in 2012
through weekend specials or shop early offers to enjoy early discounts. Additionally, we continue to
pursue new customer sign-ups at our stores in order to grow our base of members. At January 28,
2012, our Buzz Club Rewards program membership totaled 11.5 million members.
From a store operations perspective, we began the company-wide rollout of our “Ready for Business” program
in 2009. The program focuses primarily on servicing our customers and creating operational efficiencies, based
on certain performance criteria and standards centered on improving the consistency of visual presentation,
merchandise recovery efforts, and overall store cleanliness. “Ready for Business” also focuses on development
of our field management team and improving our training programs, which is key to our store growth strategy.
As we continue to expand the number of our stores, we have been working to develop the depth of our field
management team in order to internally promote and provide opportunities to qualified internal candidates who
have a strong understanding of our business model. We believe our focus on standards and investments made in
talent development have improved the performance of our new stores during their initial months of operation.
In 2012, we have three significant training and development programs, which are either new or being tested,
designed to identify and develop the management ranks within our store operations at all levels: assistant store
manager, store manager, and district manager. We will continue to refine our “Ready for Business” standards
through streamlining our communications, monitoring our field management span of control, and continuing to
review our store layouts in order to enhance our customer service levels.