Petsmart 2007 Annual Report Download - page 10

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Our Stores
Our stores are generally located at sites co-anchored by strong destination superstores and typically are in or
near major regional shopping centers. We are engaged in an ongoing expansion program, opening new stores in both
new and existing markets and relocating existing stores. Store activity was as follows:
2007 2006 2005
Store count at beginning of fiscal year .............................. 908 826 726
New, relocated and acquired stores opened ........................... 115 92 107
Stores closed ................................................. (15) (10) (7)
Store count at end of fiscal year ................................... 1,008 908 826
Distribution
Our distribution network and information systems are designed to optimize store inventory, drive the efficient
use of store labor, facilitate a high in-stock position and promote high distribution center productivity. We currently
employ a hybrid distribution system including full truckload shipments to individual stores and the splitting of full
truckloads among several closely located stores and distribution centers. Our forward distribution centers handle
products that require rapid replenishment, and our distribution centers handle the remaining products. We have
started utilizing combination distribution centers that handle all of our products. We believe the combination
distribution centers will help drive efficiencies in transportation costs and store labor. Our suppliers generally ship
merchandise to one of our distribution centers, which receive and allocate merchandise to our stores. We contract
the transportation of merchandise from our distribution centers to stores through third-party vendors, and we do not
own any trailers. We operate the following distribution centers:
Location
Square
Footage Date Opened Distribution Type
(In thousands)
Phoenix, Arizona . . ............ 620 May1996 Combination distribution center
Ennis, Texas .................. 230 November 1999 Forward distribution center
Columbus, Ohio . . . ............ 613 September 2000 Distribution center
Gahanna, Ohio ................ 276 October 2000 Forward distribution center
Hagerstown, Maryland .......... 252 October 2000 Forward distribution center
Reno, Nevada ................. 199 June 2002 Forward distribution center
Ottawa, Illinois ................ 1,000 August 2005 Combination distribution center
Newnan, Georgia . . ............ 878 July 2007 Combination distribution center
Total ....................... 4,068
We opened our new 878,000 square foot combination distribution center in Newnan, Georgia in July 2007.
This facility replaced the 200,000 square foot forward distribution center we previously leased in Newnan, Georgia,
which closed in June 2007. In March 2007, we entered into an agreement to lease approximately 873,000 square
feet in Reno, Nevada to be used as a combination distribution center. The lease commences in 2008 and will expire
in 2023. This facility will open in 2008, and it will replace the 199,000 square foot forward distribution center we
currently lease in Reno, Nevada.
In February 2007, we made the decision to exit the State Line Tack equine product line, which included closing
our Brockport, New York distribution facility. See Note 17 to the Notes to Consolidated Financial Statements for
additional information.
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