Big Lots 2013 Annual Report Download - page 172

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2012 COMPARED TO 2011
U.S. Segment
Net Sales
Net sales by merchandise category, in dollars and as a percentage of total net sales, and net sales change in dollars and
percentage from 2012 compared to 2011 were as follows:
(In thousands) 2012 2011 Change Comps
Furniture & Home Deco
r
$ 1,060,993 20.4% $ 1,010,007 19.8% $ 50,986 5.0 % (1.8 )%
Seasonal 971,003 18.6 982,604 19.3 (11,601) (1.2 ) (5.4)
Consumables 905,444 17.4 881,282 17.3 24,162 2.7
(1.9)
Food 742,267 14.2 723,291 14.2 18,976 2.6
(2.3)
Electronics & Accessories 556,658 10.7 550,513 10.8 6,145 1.1
(3.9)
Hard Home 543,954 10.4 537,092 10.5 6,862 1.3
(3.7)
Soft Home 431,999 8.3 412,355 8.1 19,644 4.8
(1.1)
N
et sales $ 5,212,318 100.0% $ 5,097,144 100.0% $ 115,174 2.3 % (2.7 )%
As discussed above in the section “2013 Compared To 2012”, in the fourth quarter of 2013, we realigned our merchandise
categories in our U.S. segment to be consistent with the realignment of our merchandising team and changes to our
management reporting. All results for 2012 and 2011 have been reclassified to represent the current merchandise category
structure for comparability.
Net sales increased $115.2 million or 2.3% to $5,212.3 million in 2012, compared to $5,097.1 million in 2011. Net sales
increased by $247.0 million principally due to the net addition of 44 stores since the end of 2011 and an additional week of
sales, as 2012 was a 53-week retail calendar year. This growth was partially offset by a 2.7% decrease in comps, which
reduced net sales by $131.8 million. Our comps are calculated by using all stores that were open for at least fifteen months.
The decrease in comps in the Furniture & Home Décor category was driven by comp decreases in ready-to-assemble furniture,
home décor, and case goods, partially offset by comp increases in upholstery and mattresses. The decrease in comps in the
Consumables category was driven by comp decreases in our health and beauty care, home organization, and pet department,
where our product assortment did not appeal to our customer’s needs, partially offset by comp increases in our paper,
household chemicals and housekeeping departments, where we had an improved selection of closeout offerings. The decrease
in comps of our Soft Home category was primarily due to comp declines in our decorative window and flooring offerings,
partially offset by growth in both fashion bedding and utility bedding. During 2012, we allocated additional selling space in
our stores to the Soft Home category in an effort to increase sales in this higher margin category. This initiative did not meet
our expectations and was a factor in certain management changes of this key category. The Food category experienced a comp
decrease driven by our beverage & grocery and candy & snack departments, partially offset by an increase in comps in our
specialty foods department. The decrease in comps in our Electronics & Accessories category was primarily driven by lower
sales in the apparel, lingerie and infant accessories departments as we allocated less space and reduced our assortments, which
allowed for the space expansion in our Soft Home and Hard Home categories. These declines were partially offset by increased
comps in jewelry and electronics. Comps in the Hard Home category decreased which was driven by comp decreases in tools,
paint, and home maintenance, as the demand from our core customer for these offerings continued to decline. The comp
decrease in Hard Home was partially offset by improved comps in the small appliances and food preparation departments,
which benefited from an increase in branded closeouts in 2012 compared to 2011. The Seasonal category experienced a
decrease in comps, which was driven by our toys, fall seasonal, and summer departments, partially offset by strong sales of our
Christmas trim, which had positive comps as our customers responded to a new assortment of products. The decrease in our
toys department was driven by additional downsizing of space allocated to the department during 2012.