Big Lots 2012 Annual Report Download - page 6

All combined, we took a business that was marginally
profitable and posted 6 consecutive years of record
earnings, growing EPS from $0.14 in 2005 to
$2.99 (non-GAAP) in 2012. We generated nearly
$2.5 billion of cash from operating activities, and
reinvested it back into the business or returned it to
you, our shareholders. Since 2005, we’ve invested
nearly $1.9 billion to repurchase 71 million shares,
or 62% of the share base, at an average price of less
than $27. Beyond new store growth, our investments
included an expansion into Canada, improvements in
information technology, and training & development
of our associates:
Expanding into Canada: In July 2011, we acquired
Liquidation World, a broadline closeout retailer
in Canada. As a stand-alone business, Liquidation
World had not been profitable in years and was
struggling to survive. We devised a WIN strategy
to increase and improve merchandise assortments,
clean up the stores, and rebuild the team. We’re
now in our second year of ownership, and we’re
making good progress toward our goals. In 2012,
we saw strength in the consumables, furniture, and
seasonal categories as customers continued to
respond favorably to our expanded assortments,
higher quality merchandise, and Extreme Value.
In 2013, we’ll start to introduce the Big Lots® brand
to Canada by opening a couple of new stores and
rebranding a handful of existing Liquidation World
locations. We expect Big Lots Canada to be an
important part of our long-term growth strategy,
and we are eager to realize its full potential.
Investing in Technology: For those of you who
have followed us for any length of time, you
know we like to be proactive in our investments
in technology and infrastructure. We believe this
approach yields a better, more cost effective
product. Our investments over the years have
included new point of sale register systems,
new merchandising & inventory systems, and
new financial systems. In 2012, we started work
on a new warehouse management system,
new HR systems, and new real estate systems …
each targeted at increasing productivity,
streamlining business processes, and positioning
us for the future.
People - Our Most Important Asset: During my
tenure at Big Lots, I’ve had the opportunity to
work with so many great people that have helped
to reinvigorate this business. As a company, we
strive to attract and retain a diverse team of highly
motivated and talented individuals. At any given
moment, there are nearly 40,000 people
working in our stores, distribution centers, field
organization, and corporate office. We’re
committed to driving successful talent management
throughout our organization. Talent Development
programs like our Merchant in Training (MIT)
Program, Building Excellent Store Teams (BEST),
1000 Ways To Succeed, our Leadership Institute,
and our Store Management Program are helping
us prepare our team for new challenges and
future growth. We believe a workplace that values
associates, rewards contributions, and encourages
growth and development is essential for our
long-term success and prosperity.
We also believe it is important to give back to the
communities that support us. I am very proud of
initiatives such as our Lots2Give® program, our
national 18-year partnership with Toys for Tots, and
our support of the Furniture Bank of Central Ohio.
Additionally, our community involvement extends to
Feeding America, food pantries, and dozens of other
programs in education, the arts, and social services
in the communities we serve.
We believe in a workplace that values
associates and encourages growth
and development.