Express 2013 Annual Report Download - page 8

Table of Contents
The following store list shows the number of stores operated by our franchisees in the Middle East and Latin America as of February 1, 2014:
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Middle East
Kingdom of Saudi Arabia 6
United Arab Emirates 3
Lebanon 2
Kuwait 1
Latin America
Mexico 7
Colombia 2
Costa Rica 2
El Salvador 1
Panama 1
Peru 1
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We design our stores to create a distinctive and engaging shopping environment that we believe resonates with our customers. Our stores feature a vibrant and
youthful look, bright signage, and popular music. Our stores are constructed and finished to allow us to efficiently shift merchandise displays throughout the
year as seasons dictate. To further enhance our customers' experience, we seek to attract enthusiastic store associates and managers who are knowledgeable
about our products and able to offer superior customer service and expertise. On average, our store managers have been with Express for 7 years. We believe
our managers and associates deliver a superior shopping experience as a result of the training we provide, the culture of accountability we foster, the incentives
we offer, and the decision-making authority we grant to store managers. We believe that our store atmosphere enhances our brand as a provider of the latest
fashions.
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The specialty apparel retail market is highly competitive. We compete with other brick-and-mortar and e-commerce retailers that engage in the retail sale of
women's and men's apparel, accessories, and similar merchandise. We compete on the basis of a combination of factors, including, among others, style,
breadth, quality, and price of merchandise offered, in-store and on-line experience, level of customer service, and brand image. See "Competitive Strengths"
for a description of how we believe we differentiate ourselves from our competitors. Our future success will depend in substantial part on our ability to
anticipate and respond quickly to fashion trends, our ability to offer our customers the products they want, where and when they want them, maintain the
strength of the Express brand in the United States, and increase awareness of the Express brand globally.
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We use a variety of marketing vehicles to increase customer traffic and build brand loyalty. These include direct mail offers, e-mail communications, and in-
store promotions. We recently increased our print advertising in key publications as another important means of enhancing brand awareness and introducing
new customers to Express. We are also investing in highly targeted marketing efforts, particularly those that employ social media, digital, and mobile tactics.
In addition, in December 2013, we began operation of a 9,000 square foot LED screen, which is affixed to our new flagship store in New York City's Times
Square. We believe this store, along with the LED screen and our other flagship store in San Francisco's Union Square, will generate additional brand
awareness, particularly among international tourists. We offer a private-label credit card through an agreement with World Financial Network National Bank
("WFNNB") under which WFNNB owns the credit card accounts and Alliance Data Systems Corporation provides services to our private-label credit card
customers. All of our proprietary credit cards carry the Express logo. We also have a tender-agnostic customer loyalty program, Express NEXT, that offers
customers the opportunity to earn rewards in conjunction with purchases of Express product and other engagement with the Express brand. We believe the
Express NEXT program encourages frequent store and website visits and promotes multiple-item purchases, thereby cultivating customer loyalty to the
Express brand.
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