Big Lots 2013 Annual Report Download - page 5

The Thrift is Back – an online campaign
promoting our Hostess
®
products – is
one example of how we are building
our brand socially.
BIG LOTS, INC. ANNUAL REPORT 2 013
training and development needs? How do we raise the level of associate engagement across all areas of our business in our
relentless drive to success? Failure is not an option. The Associate pillar, when completed, will address these fundamental
business needs.
SHAREHOLDERS
The Shareholders pillar is highly dependent on the success of the Jennifer and Associate pillars. During this SPP period
of 2014 to 2016, we anticipate sales productivity approaching historic highs and our retail operating margins improving to
approximately 6%. It’s important to understand this is a 3-year view and not intended to be a ceiling of what is possible.
This level of financial performance would drive meaningful operating margin expansion and meaningful amounts of cash
flow. The Shareholders pillar will aim to drive shareholder return not only with financial performance but also with a cash
deployment strategy based on our Board’s assessment of what is best for our company and shareholders. We believe this
continues to align management with our shareholders and ultimately gives us the best opportunity to drive shareholder return.
Our SPP also required us to make difficult decisions about exiting businesses or investments where we were not generating
a good financial return, or where we did not see an opportunity to win longer-term. In 2013, we closed our wholesale
business and announced the decision to exit the unprofitable Canadian market. These decisions were not taken lightly, as
it affected a number of dedicated associates who worked very hard in an effort to grow these areas of our business. And
while the strategic and fundamental rationale supporting the decisions was clear, we deeply regret the impact it had on our
associates, our customers, and the communities where our stores, distribution centers, and offices were located.
GIVING BACK
Giving back to the communities we serve is important. I am particularly proud of our philanthropic initiatives such as our
Lots2Give® program supporting education, our 19-year relationship with Toys for Tots, and our work with Nationwide
Children's Hospital. This year we celebrate our 10-year relationship with the Furniture Bank of Central Ohio, where together
with our vendor partners, we've raised more than $6 million for struggling families. Our community involvement extends to
Feeding America and dozens of other programs in education, social services, healthcare, and the arts. Our associates are
engaged in volunteerism and join us in our efforts to increase our community impact.
IT IS NOT BUSINESS AS USUAL
In closing, I am excited about the progress we made in 2013, and the prospects for the years to come. I’m confident we
have developed a solid strategy to deliver consistent and sustainable growth, and I am also confident we have the right
senior merchandising leadership team to execute the strategy. I am very proud of how our entire team has come together
and embraced the singular goal of strengthening the Big Lots brand by better serving Jennifer and continuously looking at
our business through her lens.
It is not business as usual here at Big Lots …
this is just the start. We are at the beginning
of the beginning.
On behalf of the entire Big Lots organization,
our Board of Directors, and all of our
associates, I thank you for your support.
Sincerely,
David J. Campisi
Chief Executive Officer and President